Two-thirds of employers cut jobs
Article Date: May 08 2009
Redundancies are on the rise
Almost two-thirds of UK companies have reduced headcount, while 70 per cent plan to do so, claims a survey from pay specialist Croner Reward.
The poll of more than 100 businesses finds that 63 per cent have cut jobs and 60 per cent introduced a recruitment freeze, while 30 per cent have reduced overtime and five per cent shortened the working week in response to difficult trading conditions.
When it comes to wages, 36 per cent of respondents say they offered pay rises at least as generous as the previous year’s in their most recent salary review. However, 30 per cent awarded a smaller increase while about the same number froze pay or postponed the pay review. The remaining two per cent cut wages.
Andrew Walker, head of Croner Reward, says that last year’s upward pressures on wages from rising fuel and food prices have been replaced by downward ones due to the struggling economy.
Fewer than one in five companies report that inflation is pushing their staff's pay higher, while more than double that number say deflation is holding it down.
