LONDON – Basic pay over the next year is predicted to rise by only about 1%, according to new data from the Chartered Institute of Personnel and Development (CIPD) and The Adecco Group Labour Market Outlook.
The CIPD’s survey, of more than 1,000 employers, attributed low wage growth to a range of factors, including Brexit uncertainty, weak productivity and the rise in the National Living Wage.
Meanwhile, it found a median of 24 job-seekers applying for every low-skilled position, compared with 19 for medium-skilled and eight for high-skilled jobs.
The survey found employers thought about half of applicants were suitable, and there had been more high-skilled than low-skilled roles created in the past year. But overall it found unemployment was low, and predicted it will fall further.
“Productivity levels are stagnant, public sector pay increases remain modest while wage costs and uncertainty over access to the EU market have increased for some employers,” said Gerwyn Davies, senior labour market analyst for the CIPD. “At the same time, it is also clear that the majority of employers have still be able to find suitable candidates to employ at current wages due to a strong labour supply until now,” he said.
Employee pay expectations were weaker than last year, suggesting employers may not be coming under pressure from workers to increase pay, despite low unemployment.