LONDON, Nov 13 (Reuters) – Huge wage increases in Britain’s private sector are expected to be matched by the public sector next year, a study shows, with the inflation fever showing no signs of abating in the jobs market.
The Chartered Institute of Personnel and Development (CIPD) says both private and public sector employers are planning a 5% pay rise, making it the biggest pay rise for civil servants since the CIPD began tracking it in 2012. He said this means that progress is being made towards this goal.
18 September – October Eight surveys of 2,000 employers were carried out after Chancellor Rishi Sunak proposed pay rises of more than 6% for teachers, doctors and other civil servants in July. .
The Bank of England forecasts wage growth of 4.25% next year, despite falling headline inflation and signs of economic stagnation, keeping interest rates at a 15-year high of 5.25%. This is a big part of the decision.
The CIPD survey found that 51% of public sector employers reported difficulty filling vacancies, compared to 38% of private sector employers.
Overall intention to cut jobs has fallen for the first time in almost two years, with 17% of employers expecting to make some cuts in the second half of 2023.
John Boys, senior labor market economist at the CIPD, said: “The post-pandemic economy has been characterized by high vacancies and a reduced supply of candidates, and this dynamic continues.”
“The demand for talent remains strong, especially in the public sector, so it makes sense for employers to expect pay increases in line with those in the private sector to remain competitive.”
The survey also shows that a quarter of organizations with hard-to-fill vacancies plan to introduce or increase automation, almost double the level in mid-2022. .
Official figures to be released on Tuesday set the Bank of England’s dilemma as wage growth remains near record highs even as employment numbers are expected to fall, according to a Reuters poll of economists. is likely to highlight.
Reporting by William Schaumburg; Editing by Andy Bruce
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