Pay freezes have shown signs of slowing and pay rises could be on the increase, according to the Bank of England’s Agents’ summary of business conditions for May.
The report revealed the number of pay freezes for the period from late March 2010 to late April 2010 were lower than reported in 2009.
Further indication of recovery was evident in small pay awards given to reward improved profitability, to recognise employees’ loyalty or to boost morale.
The report also showed total labour costs had picked up more than pay settlements, in part reflecting higher pension fund contributions among companies with significant deficits, the return of full-time working, reintroduction of overtime and higher commission payments in the business services sector..
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