Almost half (48%) of UK organisations have kept pay freezes in place with 52% closing their doors to new recruits, according to research from the Chartered Management Institute (CMI).
CMI’s Economic Outlook, which surveyed 900 chief executives from the private sector, revealed that employers are expecting the economic situation to get worse before it improves.
As a result, the majority (68%) are opposed to the proposed increase in employer national insurance contributions.
Lord John Eatwell, chief economic adviser to CMI, said: “The economy is growing, albeit at an anaemic 0.2%, but the promise of recovery is not enough to sustain our businesses while they wait for the situation to improve.
“Practical help and support is urgently needed. Managers are integral to driving our recovery, but their efforts are being hampered by a lack of available finance and poor levels of employee morale. If they are to turn the situation around, then Government help is urgently required.”
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