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Latest NewsPay & benefits

Pay freezes set to continue in 2010

by Personnel Today 21 Dec 2009
by Personnel Today 21 Dec 2009

Workers are facing pay freezes for the second year running in 2010, the Confederation of British Industry has warned.



Employers are likely to refuse pay increases as unemployment continues to rise until next autumn, the body predicts.



The business organisation expects the UK to emerge from recession during the final three months of this year, but believes interest rates will rise next year, possibly reaching 2%, <A 5 ” href=”http://www.thisismoney.co.uk/work/article.html?in_article_id=496345&in_page_id=53928&ct=5 ” target=_blank>reports This is Money.



Deputy director general John Cridland said the outlook was ‘brightening’ but warned: “We will need to keep our nerve during early 2010, and there is no sign of a clear driver of strong economic growth.



“In the spring many staff will face another cycle of wage freezes, and job losses will continue rising until the autumn.



“Although the first few months of 2010 will be difficult, growth will gradually pick up and increasing confidence and demand will lead the UK into a more positive 2011.”



 

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