Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BonusesLatest NewsEconomics, government & businessPay & benefits

Bonuses almost wiped out in private sector as employers cut costs

by Louisa Peacock 23 Apr 2009
by Louisa Peacock 23 Apr 2009

Bonuses have virtually been wiped out in the private sector this year as employers cut costs to retain key staff, the latest labour market figures out last week showed.

The Office for National Statistics data revealed the earnings annual growth rate, including bonuses, was 0.1% in the three months to February 2009, down 1.6 percentage points from the previous quarter. Private sector pay growth, including bonuses, has fallen to -2.8%, compared to 3.5% in the public sector.

Unemployment had also increased by 177,000 people over the quarter, taking the new jobless total to 2.1 million – the highest in 12 years.

John Philpott, chief economist at the Chartered Institute of Personnel and Development (CIPD), warned the private sector pay slump would continue as unemployment rose to an “inevitable” 10% of the working population by 2010.

“Bonuses have virtually died a death in the private sector this year as employers cut costs and staff try to hold onto their jobs,” he said. “Add the arrival of price deflation into the mix and the chances are that growth in regular pay (excluding bonuses) will also show signs of a further marked slump in the coming months.”

Public/private jobs divide

The employment gap between the two sectors also continued, with employment up by 30,000 in the public sector but down by 105,000 in the private sector year-on-year.

Last month, the CIPD called on the government to clamp down on public sector pay rises. Unions are still negotiating this year’s pay deal for council staff, after rejecting the initial 0.5% offer on the grounds it was far below the 2% other public sector workers will receive.

A CBI forecast out last week warned unemployment is expected to continue to worsen over the next 12 months, breaking 10% in the first quarter of 2010 and peaking at 3.25 million unemployed (10.3%) in the second quarter.

City finance jobs still under threat

Thousands more City finance jobs are expected to go this year despite signs of economic recovery, according to a research organisation.

The independent consultancy, the Centre for Economics and Business Research (CEBR), has predicted the loss of another 29,000 City finance jobs. This figure is less than the 34,000 jobs it already predicted in October.

Richard Snook, a senior economist at CEBR, said: “We are beginning to see light at the end of the tunnel for the City.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

However, he added there will be further serious job losses as a fall in mergers and acquisitions is expected.

Overly tough restrictions on the City, prompted by the banking crisis, could damage the long-term growth of the finance sector, Snook added.

Louisa Peacock

previous post
Internet flirting at work admitted by half of younger workers polled
next post
Legal dilemma: discrimination rights

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Fewer workers would comply with a return-to-office mandate

21 May 2025

Redefining leadership: From competence to inclusion

21 May 2025

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

Uncertainty over law hampering legal use of medical...

20 May 2025

Black security manager awarded £360k after decade of...

20 May 2025

Employers ‘worryingly’ ignorant about stress risk assessments

20 May 2025

UK and EU agree to collaborate on ‘youth...

19 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+