October 20, 2010
In a sign of Britain’s emergence from a long-arching recession, businesses are beginning to lift the widespread pay and recruitment suspensions that occurred during the economic downturn.
A survey by the Confederation of British Industry (CBI) has found that the number of companies operating recruitment freezes dropped by 54% and pay freezes fell by 41% this year, as businesses started to recover from the recession.
Just 7% of employers halted recruitment this autumn, compared to 61% in spring 2009. Similarly, the amount of companies operating pay fixes fell to 14% from 55% last year.
However, public sector employers are planning to increase cost-cutting measures once wholesale cutbacks are announced by the government this month, in an effort to tackle the country’s lingering deficit.
One-fifth of public sector organisations plan to cease recruiting over the next six months and 58% intend to halt pay rises, the survey revealed.
"Firms are cautious about recruitment and pay, given the fragility of the economy. But they know they can't afford to take staff for granted, and must redouble efforts to keep employees on board as they gear up for growth," commented John Cridland, CBI Deputy Director-General.
