Industry pay settlements fall

Pay data for the three months to the end of August from the manufacturers' organisation EEF and JAM Recruitment shows that the average pay settlement for the period was 2.5%, down from the level of 2.7% for the three months to the end of July. Commenting on the latest figures, EEF chief economist Lee Hopley said that although settlements continued to hover at the lower range of normal levels, the slight fall in the latest data reflected a mood of uncertainty which had been prevalent through the summer months but also realism. "If we are not there already then we are rapidly approaching the point where fears of wage inflation are off the radar," she added. At JAM Recruitment, chief executive John Morris said that while settlements reflected a cautious attitude on the part of manufacturers there was still cause for optimism. He went on: "Recruitment levels in the sector are a neat barometer of manufacturing activity, and we're seeing sustained growth in some areas. "The North East and West Midlands are looking especially strong, and demand for candidates that can drive lean and continuous improvement initiatives remains high throughout the UK. The challenge moving forward will be how UK plc can provide the skilled employees the sector needs to meet the demands of economic growth."