[W]e are in a topsy-turvy period. For most people, recovery is proving far more painful than recession. Real incomes held up surprisingly well in the recession but are falling sharply in the recovery.This is according to Sunday Times Economics Editor David Smith. The recent surprise fall in inflation means that the gap between pay awards and inflation has narrowed slightly. The headline pay award is currently at a subdued level of 2%, according to latest figures from the XpertHR pay databank, covering the three months to 30 June 2011.
XpertHR pay specialist Sheila Attwood writes:
For the time being, employers are unable to respond to high inflation by paying matching increases in employees' wage packets. Instead, company performance/ability to pay is one of the most important influences on pay settlements, according to the latest XpertHR research.So when can we expect the situation to improve?
The squeeze on UK workers' pay packets is, if anything, likely to intensify further, argues the Ernst & Young ITEM Club.
- For more on the gap between pay and inflation and its consequences for UK households, see the August 2011 XpertHR Economic Commentary.
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Comments (1)
Headline pay award of 2% eh. My wife works as a swimming instructor and her take home pay has gone up over the years as a result of being recommended by people and attracting new clients for her and her employer. Her hourly rate of pay hasn't gone up in six years. Carole and her colleagues would probably set a new 400m swim team relay record for 2%.
Note: this is not a complaint, simply a real life example to help illustrate your post.
Posted by Doug Shaw | August 6, 2011 8:02 AM
Posted on August 6, 2011 08:02