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UK employers expected to give 3% pay rise to fill and retain vacancies

Date: February 15, 2022 Sunil Jha Sunil Jha
UK employers expected to give 3% pay rise to fill and retain vacancies 
British employers are reportedly being expected to offer a pay rise of 3% this year, the highest in a decade yet below the rate of current inflation, in order to recruit new workers and retain old ones, as per a survey by YouGov for Chartered Institute of Personnel and Development (CIPD).



In a survey of over 1,000 recruitment and human resource professionals, it was found that almost two-thirds of employers in the country are expecting to have difficulties in filling up vacancies over the next six months, amid a tight labor market hitting major firms in the country.



Due to the pace of economic recovery in the UK, pay growth has increased sharply than it was pre-pandemic, following the lockdowns during early 2020.



Weekly earnings have risen by an average of 4.2% year-on-year during the fourth quarter of 2021, faster than at any rate between the financial crisis in 2008 to the beginning of the pandemic in 2020, as per the Office for National Statistics.



The CIPD also reported that over two-thirds of recruiters expected to finish hiring by end of March this year and are planning to lower worker redundancy than it was before the pandemic.



Around half of the recruiters surveyed admitted their struggle in filling vacancies, while 41% revealed that much of their staff was leaving to look for better opportunities.



Along with pay rise, workers were able to achieve other benefits that ranged from hybrid working, whether at home or office, as well as a four-day week without loss of pay.



Sectors like hospitality saw major difficulties in recruiting workers due to the drop in immigration following Brexit and the pandemic restrictions. According to Caterer.com, salaries in the sector have risen by 12%, with many offering a wage of over £50,000 ($67,620).



The 3% average pay rise, however, will result in a real wage cut for many workers due to increasing prices across the country’s economy. Annual consumer prices index inflation reached 5.4% by the end of last year, with the Bank of England expecting it to reach 7% by spring this year.



Source credit: https://www.theguardian.com/business/2022/feb/14/uk-employers-expecting-to-award-pay-rises-of-3-this-year-survey-shows

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.