Low pay rise levels persist in spite of economic recovery
09 Nov 2015
Despite Britain’s economy recovering, pay rises are to remain at a low level, with wages expected to increase by around 2% over the next year, according to a new survey released by the Chartered Institute of Personnel and Development.
The prospect of subdued pay rise levels comes in spite of the introduction of a new national living wage of £7.20 an hour from next April.
The survey also highlighted complaints from business leaders regarding job applicants’ lack of skills.
It revealed that the number of applicants for jobs requiring low skills averaged at 25, whilst medium-skilled jobs received 15 applications and higher-skilled roles secured only eight applications.
However, the survey suggested that only a small number of industries have been affected by skills shortages, with these industries utilising more training resources or employing apprentices.
Furthermore, a separate study has suggested that Britain’s gender pay gap will mean women are effectively ‘working for free’ until the end of this year, beginning from 9 November.
According to the Fawcett Society, Equal Pay Day falls on this date for 2015.
The gender pay gap between men and women working full-time currently stands at 14.2%, data from the Office for National Statistics (ONS) reveals. These figures are measured by gross hourly pay and reflect the latest obtainable data, which, presently, is taken from 2014.
The gender pay gap statistic for all workers, whether they are in part-time or full-time employment, is 19.1%.
Chief executive of the Fawcett Society, Sam Smethers, stated: ‘There has never been a better opportunity to close the pay gap for good’.