Manufacturing employees are feeling economic recovery in their earnings, according to the latest pay data from EEF, the manufacturers’ organisation.
It shows the average pay settlement in the six months from February to July was 2.6 per cent - an increase on last year when settlements averaged 2.4 per cent.
Pay deferments and freezes have continued to fall, with the three-month average for freezes in July this year running at 6.4 per cent compared to 14.6 per cent in July last year.
EEF’s findings suggest manufacturers are rewarding employees after a very difficult economic period. Employers are also countering skills shortages by paying above-inflation awards to retain and attract key staff.
Andy Tuscher, Yorkshire and Humber Region director at EEF, says: “Manufacturing pay continues to run ahead of the wider economy with signs that the pressure on household budgets, at least for those in industry, is starting to unwind.
“After many challenging years, manufacturers now seem to be in a position to pay their employees back.”