Pay cuts "for years to come" in the private sector

Pay cuts 'for years to come' in private sector Freezing of average earnings figures that workers receive compensation actually less when inflation is taken into account Photo: ALAMY

Some 16pc of enterprises are still pushing through a gel on wages statistics the most recent three months September published today by IDS pay show.La GDP growth reached 0 8pc during the same period, it was confirmed Tuesday.

Freezing of average earnings figures that workers receive compensation actually less when inflation is taken into account .the ' price inflation, which includes the cost of mortgage retail index stands currently at 4.6pc.Même consumer index, measuring the target of the Government, is 3 1pc.

The analysis also found that another 36pc public sector agencies froze pay within three months of September in a drive to reduce costs, which means that two years pay freeze imposed by the Government in June is beginning to take effect.

Ben Yearsley, Hargreaves Lansdown, investment manager said: "it does pay me that the private sector is still freezes not surprising." The economy is picking up, but only in certain régions.Fabrication still feels, services will pick up slightly.It will be difficult for the two, three or four years.?

He said employers were nerve on economic prospects and were reluctant to put themselves in a situation of vulnerability by increasing the salary costs. ""It's a realization that we are not the woods again," he said.

However, the IDs figures show an increase wage typical in the third quarter was 2pc for the whole economy .Certains 17pc transactions worth 3pc or more.

Ken Mulkearn, editor-in-Chief of IDS, remuneration report stated: "colonies level reflects wide recovery in profitability and higher inflation to a certain extent ainsi.Si these indicators remain on track, in 2011 we could see 3pc emerge as the Central pay budget".


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