Skip to main content
Become a member
  • Register
  • Login

Register Login
Press Releases

Sustainable pay rises underpin economic recovery - IoD

19 Feb 2016

Responding to employment figures released this morning which showed the unemployment rate falling to 5.7%, and average wage growth (including bonuses) running at 2.1% for the period October – December 2014, James Sproule, Chief Economist at the Institute of Directors said:

“Today’s strong employment figures and continuing signs of real wage growth will be welcome news to thousands of businesses and millions of employees. The growth in jobs over the last few years has been particularly impressive, and, as competition for talent heats up, wages will continue to rise, with two-thirds of IoD members planning pay rises at least in line with inflation over the coming months.

“Throughout the recession, employers and employees co-operated to save jobs, by forsaking pay rises and cutting back hours. We are now seeing the benefits of this mature and responsible approach. Businesses are recovering strongly, as they benefit from having maintained an experienced and skilled workforce, and staff are being rewarded with modest and sustainable pay rises and bonuses.

“Average earnings in this period were boosted by strong year-end bonuses across a broad range of sectors from construction and manufacturing to finance and business services, suggesting good performance across the economy. However, raising bonuses and not salaries implies some companies are still cautious about increasing their fixed costs.”

Picture of the 2018 Professional Development Portfolio

You decide how high you reach and how far you go with the IoD. Download your autumn/winter training calendar now.

Download here

Contact IoD West Midlands

For more information, please contact

0121 643 1868

West Midlands

Branch and staff contacts can be found on the main Contacts tab

IoD West Midlands
iHub Office
Colmore Gate
2-6 Colmore Row
B3 2QD