Little evidence of pay pressures in manufacturing, says EEF and JAM
Mon, 23 Apr 2012
The average pay rise within manufacturing firms over the three months to the end of March was 2.6%.
This is according to a survey of 300 firms undertaken by the manufacturers’ organisation EEF and JAM Recruitment. The 2.6% figure is marginally above the 2.5% figure for the last three months of 2011.
According to the compilers of the survey, this shows little or no evidence of pressures on pay, with Lee Hopley, EEF chief economist, saying: “It is clear that the cocktail of competitive pressures and continued economic uncertainty is leading to a sense of realism on both sides.”
John Morris, JAM’s chief executive, adds: “The fact that pay increases seem to have settled slightly below the historical average is good news for manufacturing businesses, which are not seeing margins depleted by excessive upwards pressure on wages.”
Morris goes on to say: “There is a significant disparity between the salaries that manufacturing businesses are prepared to offer, and how much candidates think they’re worth. This tension could well nudge pay settlements back up to average levels and beyond in the near future.”