Our 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.

Strong pay growth in UK spreads to public sector, survey shows

by Jessica Weisman-Pitts
0 comment

Strong pay growth in UK spreads to public sector, survey shows

LONDON (Reuters) – Strong pay growth in Britain’s private sector will be matched in the public sector in the year ahead, according to a survey which showed no sign of an easing of inflationary heat in the jobs market.

The Chartered Institute of Personnel and Development (CIPD) said employers in the private and public sectors both planned 5% pay rises, meaning public workers were on course for their biggest pay rise since CIPD began its surveys in 2012.

The Sept. 18-Oct. 8 survey of 2,000 employers took place after Prime Minister Rishi Sunak offered a pay rise of more than 6% to teachers, doctors and other public workers in July.

The Bank of England expects wage growth of 4.25% next year, a big part of its decision to keep interest rates at a 15-year high of 5.25% despite a fall in headline inflation and signs of stagnation in the economy.

The CIPD survey showed 51% of public-sector employers reported hard-to-fill vacancies compared to 38% of private-sector employers.

Overall redundancy intentions fell for the first time in nearly two years with 17% of employers expecting to make some redundancies in late 2023.

“The post-pandemic economy has been characterised by high vacancies and dwindling candidate supply and this dynamic continues,” CIPD senior labour market economist Jon Boys said.

“There remains strong demand for people, particularly in the public sector. It’s no surprise therefore that employers are expecting pay increases to match that of the private sector to remain competitive.”

The survey also showed that a quarter of organisations with hard-to-fill vacancies planned to introduce or increase automation, almost twice the level of mid-2022.

Official data due on Tuesday is likely to underscore the BoE’s dilemma with employment numbers set to fall but wage growth still stuck close to record highs, according to economists polled by Reuters.


(Reporting by William Schomberg, editing by Andy Bruce)