UK Employers Focus on Cost Management Amid Record Low Confidence
Survey Reveals Employer Priorities and Economic Outlook
LONDON, May 18 (Reuters) - British employers are prioritising cost management over growth with their confidence close to a record low and their staff are likely to see inflation eat into their pay in the year ahead, according to a survey published on Monday.
The Chartered Institute of Personnel and Development, a professional body for the human resources sector, said rising costs and uncertainty were continuing to weigh on hiring and investment decisions.
Key Findings from the CIPD Survey
The survey, which was conducted after the start of the Iran war but before Britain's latest bout of political instability, showed:
Top Employer Priorities
• Cost management was the top priority for UK employers ahead of improving productivity and growing market share
Impact of Global and Political Events
• Iran war does not yet seem to have materially affected hiring intentions in the UK
Employer Confidence and Pay Trends
• Indicators of employer confidence held close to record lows
Pay Awards and Inflation
• Planned pay awards were mostly around 3% for the next 12 months - unchanged from levels over the past two years but below most forecasts for a rise in inflation
Survey Methodology
• The CIPD survey of 2,049 employers was conducted between March 23 and April 23, before heavy losses in local and regional elections for Prime Minister Keir Starmer's Labour Party this month increased pressure on him to resign.
(Writing by William Schomberg; editing by Suban Abdulla)
