07 December 2004
Pay Shows Weak Response to Skill Shortage
The latest wage and salary survey shows that pay rates are still responding weakly to the labour and skills shortage, Council of Trade Unions economist Peter Conway said today.
The National Employers Wage and Salary Survey, published by the Employers and Manufacturers Association, showed wages and salaries went up 3.5 per cent in the year ended July 2004.
“If you take increased consumer prices and the growth in productivity into account alongside labour shortages, it is only a very modest increase,” Peter Conway said.
Wages had only risen significantly in a small number of trades with acute skill shortages such as construction, he said.
The survey also showed that the pay of ordinary employees went up faster than managers’ pay.
“If this is the case then it’s about time – it is at least a decade since I have seen that happen,” Peter Conway said.