Pay rises will remain subdued over the next year, despite Britain’s robust recovery and complaints from business leaders of acute skills shortages, according to a survey of employers.
Wages will increase by an average of 2% over the next year as UK employers continue to recruit the workers they need without significantly hiking wages.
The survey by the Chartered Institute of Personnel & Development found that the number of applicants per vacancy remained steady over the past year, with average applications for jobs running at 25 for each low-skilled role, 15 for medium-skilled roles and eight for highly skilled roles.
The CIPD said this response showed employers still had the whip hand in the labour market, with most businesses seeing a steady flow of suitable candidates when they advertise jobs.
Only a limited number of industries were hit by skills shortages and many of those were putting more resources into training their existing staff or employing apprentices to fill the gaps.
