British employers are prioritising cost management over growth with their confidence close to a record low and their staff are likely to see inflation eat into their pay in the year ahead, according to a survey published on Monday.
The Chartered Institute of Personnel and Development, a professional body for the human resources sector, said rising costs and uncertainty were continuing to weigh on hiring and investment decisions.
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The survey, which was conducted after the start of the Iran war but before Britain’s latest bout of political instability, showed:
- Cost management was the top priority for U.K. employers ahead of improving productivity and growing market share
- Iran war does not yet seem to have materially affected hiring intentions in the U.K.
- Indicators of employer confidence held close to record lows
- Planned pay awards were mostly around 3% for the next 12 months — unchanged from levels over the past two years but below most forecasts for a rise in inflation
- The CIPD survey of 2,049 employers was conducted between March 23 and April 23, before heavy losses in local and regional elections for Prime Minister Keir Starmer’s Labour Party this month increased pressure on him to resign.
(Writing by William Schomberg; editing by Suban Abdulla)
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Source:
Reuters
