The Chartered Institute of Personnel and Development (CIPD), the professional association for human resources managers, argues today that pay growth is … likely to slip back in 2016 to just 2 per cent, as employers pass on the additional costs from the Chancellor’s new national living wage (NLW) and apprenticeship levy on to their workers in the form of lower pay increases than they would otherwise have received.
“With inflation close to zero some employers will try to manage these costs by restricting pay rises for their better-paid employees,” said Mark Beatson, the CIPD’s chief economist.
He also described … Bank of England and OBR forecasts as “very optimistic”.
Source: George Osborne’s labour market policies ‘will backfire and hit pay growth’ | Business News | News | The Independent
Join the Vox Political Facebook page.
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Buy Vox Political books so we can continue
fighting for the facts.
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
I notice that what they mean is… “to keep our profits and share holder dividends the same, we will squeeze the middle earners in our companies by not giving them pay rises to offset the increased costs at the bottom end”.