Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

UK employers plan smaller pay rises for 2024: CIPD

By David Milliken

LONDON (Reuters) – British employers plan smaller pay rises over the coming year than they did three months ago, the first such drop in nearly four years, reflecting less willingness to tolerate higher labour costs, a major survey showed on Monday.

The figures are likely to increase the confidence among Bank of England policymakers that domestic inflation pressures are easing following recent sharp falls in energy prices, paving the way for lower interest rates later this year.

British employers expect to raise basic pay by an average of 4% over the next 12 months, down from an expected rise of 5% through 2023 and in late 2022, according to a survey by the Chartered Institute of Personnel and Development (CIPD).

This is the first fall since early 2020 when Britain was hit by the COVID-19 pandemic.

“This feels like a key moment in the UK labour market,” CIPD economist Jon Boys said.

The estimate is based on a poll of 2,006 employers conducted by YouGov from Jan. 2 to Jan. 22.

While pay rises in the private sector and non-profits were in line with the median, public-sector employers expect to raise pay by 3% and to recruit staff at the slowest pace since 2019.

Across employers as a whole, the proportion saying that they were funding pay rises through reduced staffing rose to 21% from 12%, while the proportion who were absorbing higher wage costs in profit margins or general overheads dropped to 37% from 50%.

This month the BoE said it was starting to consider cutting interest rates from a near 16-year high of 5.25%, but annual wage growth of over 6% meant a forecast fall in inflation to its 2% target risked proving temporary.

A BoE survey showed employers expected to raise pay by 5.2% this year.

 

(Reporting by David Milliken. Editing by Andrew MacAskill)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts