CBI warns of further salary freezes

Professionals working in permanent placements should not expect pay rises in 2010, the Confederation of British Industry (CBI) has warned.

The CBI said it has witnessed signs the UK's economy is beginning to recover and predicted that it would experience slow but steady growth during 2010.

While this may be good news in the long term, John Cridland, the CBI's deputy director general, does not expect workers to experience the benefits of the recovery in the immediate future.

"In the spring many staff will face another cycle of wage freezes, and job losses will continue rising until the autumn," he said.

The CBI predicted that after severely constrained wage growth in 2010, earnings would grow by an average of 3.9 per cent in 2011.

News that pay rises are unlikely to be available may persuade some professionals to try to take advantage of the improving economic conditions by looking for a permanent position with a better salary package.

Updated: 23 December 2009.
Categories: finance-and-accounting, market-and-industry-news.