Wage growth ‘likely to remain weak’, study suggests
A study carried out by the Chartered Institute of Personnel and Development (CIPD) has suggested that wage growth is set to ‘remain weak’.
Pay rises for 2018 have been forecast at just 1%. The study attributes the subdued forecast to an increase in labour supply over the past year.
Meanwhile, 23% of private sector firms stated that National Living Wage (NLW) costs have affected pay growth.
21% of businesses cited uncertainty in regard to access to the EU single market as having an effect on income growth, and a further 21% believe that the government’s auto enrolment pensions scheme has affected wage growth.
Gerwyn Davies, Senior Labour Market Analyst at the CIPD, said: ‘Predictions of pay growth increasing alongside strong employment growth is the dog that hasn’t barked for some time now, and we are still yet to see tangible signs of this situation changing in the near-term.
‘The facts remain that productivity levels are stagnant and public sector pay increases remain modest, while wage costs and uncertainty over access to the EU market have increased for some employers.’