Manufacturing pay is remaining stable through the bargaining period for manufacturing companies in the face of a flat economy, according to the latest survey on pay data from EEF, the manufacturers’ organisation and JAM Recruitment.
According to the EEF/JAM pay survey of 245 companies the average settlement level for the three months to the end of March was 2.4%, unchanged from the 3 month period to the end of February.
The proportion of pay freezes fell was also unchanged at 9% of settlements, though the fact they remain evident highlights the pressures companies are under. The number of deferments in the same period fell to just under 5%.
Commenting on the latest figures, Ms Lee Hopley, EEF Chief Economist, said:“Despite inflation remaining above target, this is not being reflected in pay pressures for manufacturing companies. So long as the economic outlook remains tough, there is little to suggest that there will be any change to this position.
John Morris, Chief Executive of JAM Recruitment, said his company was “seeing a significantly higher volume of vacancies being advertised than was the case 12 months ago, and the labour market has become more dynamic as a result. This an encouraging sign, but manufacturers will be aware that they need to continue to invest in retaining and developing their most talented employees to stay ahead of their competitors.”