With shortage of skills and labour in Britain, companies across the Country are likely to offer the highest pay hikes in over a decade.
However, the five per cent pay hike will not be enough to tackle the rising inflation feel many. Also, as per a study by the Chartered Institute of Personnel Development (CIPD), about 55 per cent of recruiters intend to hike variable pay. But if this trend continues, the Bank of England has warned that it may become an even bigger challenge to rein in the rise in inflation.
This year, the expected median annual pay rose to five per cent. This is the highest in over a decade. It was four per cent in the November to January period.
Over 50 per cent of the over 2,000 employers surveyed have admitted to finding it challenging to draw talent for various roles and also retain them. And most expect this issue to continue for the next six months.
What is surprising is that there is shortage of labour even amidst the economic slowdown, rising cost of living and fears of recession.
There is pressure on living standards too as teachers, nurses and transport workers have been on strike on and off, protesting against the poor work conditions and low pay.
After touching 11.1 per cent, which was the highest in over 40 years, in October 2022, the annual inflation dropped to 10.5 per cent in December 2022.
Employers and recruiters seem keen to hire older workers and even people with health conditions. That means, people returning to the workforce may be in demand.
