Manufacturing pay freezes rise

The number of manufacturing firms instigating pay freezes has grown to one in seven in the three months to August 2012, due to economic uncertainty, according to research by EEF, the manufacturers’ organisation, and Jam Recruitment.

The September 2012 pay bulletin found that this was an increase from the one in nine manufacturing organisations freezing pay in the three months to June 2012.

Andrew Johnson, senior economist at EEF, said: “Considerable uncertainty stands in the way of any strong growth in pay in manufacturing, on top of other indicators suggesting demand is softening as eurozone markets and domestic demand remains weak.

“Government needs a strong plan for growth to offset the ongoing drags on business confidence.”

John Morris, chief executive at Jam Recruitment, added: “With skills’ shortages acute in many sectors, candidates are alive to the fact that their expertise is in demand.

“This could trip-up some employers in the future if they’re not prepared to try and match these expectations with pay increases.”