Nearly sixty per cent of private sector workers suffer pay freeze

04/08/2011

A staggering fifty-eight per cent of workers in the private sector have suffered a pay freeze over the last six months.

This daunting figure was revealed in the Employee Outlook study, conducted by the Chartered Institute of Personnel and Development (CIPD), who also found six per cent of private sector workers have actually had their pay cut since January 2011.

A quarter said they have received a pay increase in the last six months, while four out of five public sector workers admitted they had not had a pay increase in the same time.

Considering most pay increases are dished out to employees between January and May these figures paint a bleak outlook suggesting many may not receive an increase at all this year.

Charles Cotton, the CIPD’s performance and reward adviser, told Totally Money: “Even those who are lucky enough to get an increase in their pay will find it below the current cost of living, compounding consumer belt tightening. Inflation figures later this month will highlight growing pricing pressures, which is likely to continue for some time.

“We will see some increase in the number of private sector workers receiving a pay award in the second half of 2011, especially in the retail, catering and hotel sectors, as the increase to the national minimum wage comes into effect in October.”

Those in the North East were also less likely to have received a pay increase this year, the poll of 2,000 people revealed, 75 per cent stating their pay had been frozen.

However, Workers in Scotland were the most likely to get a raise, with nearly 40% saying their pay had gone up since January.

Those working in hotels and restaurants and the construction industry were the least likely to have seen their salaries increase.

Another poll of 1,252 carried out by Totaljobs showed many public sector workers would consider transferring to the private sector in search of a better pay rate. This is despite official figures showing pay in the public sector is considerably better than the private sector.

John Salt, director of totaljobs.com, told Totally Money: “It is clear that public sector jobseeker confidence is at an all-time low, with a large section believing they are better off in the private sector.

“However, the sectors are difficult to compare in terms of pay, particularly in the current climate. With large numbers looking to migrate to the private sector, we must remember that jobs are out there.”

Tags; Income Worries and Debt, Debt Management and Banking, Young Family Finances,

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