Legal News
Rising Unemployment Rates Reduce Salaries (24 October 2011)
Date: 24/10/2011
Increasing unemployment rates are forcing salaries down as demand for jobs means that companies are able to offer less remuneration for open positions. Recruitment firm, Office Angels, claimed that pay rates had stalled across administrative and non-professional roles, with customer service jobs being hit by the largest reduction in average advertised annual salaries. Pay rates were down by more than six per cent in comparison to last year. Pay for office managers, however, increased by over three per cent. Hourly income for office managers averaged at £17 while hourly income for jobs in retail averaged at £6 and £8 in customer services.
Office Angels’ managing director, David Clubb, claimed that some roles will always prove more robust and demand greater salaries. However, in the current climate in which demand for roles far outstrips supply, employers no longer feel obliged to offer high salaries to attract strong candidates. As employers effectively have access to a large potential pool of employees, salaries are unlikely to rise in the short term.
A study conducted by pay specialists, XpertHR, revealed that private sector employers predicted median pay increases to reach 2.5 per cent over the next year, 0.2 per cent greater than this year. A survey involving around 300 firms uncovered that pay freezes are predicted to affect one in ten employee groups.
Duncan Lewis’ employment law solicitors are able to advise clients on their right to receive the minimum wage.