Pay spiral expected to continue

The terrorist attacks of 11
September have failed to damage projected pay increases for 2002.

 

A new report by consultants William
M Mercer reveals that 33 of the 62 countries surveyed project pay increases of
at least two per cent above the projected rate of inflation.

 

Other countries still expect the
level of pay increases to be higher than inflation but by less than 2 per cent,
while only a handful – including Russia, Colombia and Ecuador – expect them to
be lower than inflation.

 

In the UK, projected rises are between
3.2 and 4.5 per cent. The rate of inflation is expected to be 2.1 per cent.

 

"Despite unsteady economic
conditions in many parts of the world, most workers stand to make gains in
buying power next year," said Safarina Kardany, senior researcher at
William M Mercer.

 

By Ross Wigham

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