You are here: Home - Household Bills - News -

Payrises likely in 2018, firms say

0
Written by:
19/12/2017
Confidence among UK businesses remain high, with over half of employers planning to raise wages at or above inflation over the next 12 months.

The CBI/Pertemps Network Group Employment Trends Survey provides an annual snapshot of the latest labour market trends and business sentiment. It shows a positive picture, with firms expecting to create new jobs in 2018.

Confidence is highest among small and medium-sized employers, with a positive balance of +58% expecting to add jobs in the coming year. Employment growth is being seen across all job types, with positive balance scores for permanent (+35%), temporary (+12%), graduate (+18%), and apprenticeship positions (+42%).

There was also a positive picture on pay, with over half of respondents (52%) aim to raise pay for their employees in line with (or above) inflation in the coming year. Only 3% are planning to freeze pay. The National Living Wage is having an impact. In order to cope with increasing costs, 21% of firms are raising prices, while 32% are increasing investment in training to boost the value added by employees.

However, weak productivity continues to act as a brake on pay and while pay growth has remained subdued, higher inflation means that real wages have now been falling for six straight months and are 0.4% lower on average than a year ago.

The survey also revealed weakening confidence about the competitiveness of the UK labour market as a place to invest and employ people. Half of UK businesses (50%) believe the UK has become a less attractive place to invest and do business over the past five years and nearly two thirds (63%) of businesses currently believe that the UK will become a less attractive location over the next five years.

Fewer than one in five (19%) expect it to become a more attractive location. This is partly due to Brexit and partly other factors. The respondents cited the main threats to the UK labour market as the skills gaps (79%), access to labour supply (49%) and access to highly skilled migrants (43%).

There were also significant regional differences. The number of people in work increased most in London (+130,000), the South East (+114,000), and the North West (+90,000), but fell in the East Midlands (-45,000), Wales (-28,000), and Northern Ireland (-16,000).

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week