The prognosis for pay awards across the UK economy in 2010 and beyond is less than rosy (PDF format, 47K) (external website), according to Bank of England governor Mervyn King.
In a recent speech, King gives an overview of global prospects for recovery, stating that "the world economy is now coming out of recession". Focusing on the UK, "there is a long period of healing ahead".
In this context, pay restraint is likely to remain a key feature of the UK employment landscape. As King puts it:
The patience of UK households is likely to be sorely tried over the next couple of years. There is little scope for growth in real take-home pay, which may remain weak even as output recovers.
Latest IRS data show that pay awards staged a slight recovery in the closing months of 2009. But the pay outlook is uncertain: pay awards could either stage a further weak recovery in 2010, or slump back toward their recent all-time low of zero.
- Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.
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