For the first time since November 2015, average pay settlements have risen above 2% over the last three months, with the manufacturing sector being one of the top five industries receiving pay rises within the last month.
This increase has been attributed to a number of reasons including:
Rise in inflation
Initiatives from manufacturing employers to attract top talent in efforts to increase the number of job applications, which year-on-year have dropped by over 6.3%.
Rise in the number of jobs within the manufacturing sector, up by 24% year on year.
EEF (The manufacturing organization) senior economist Hela Mrabet explains: ‘As business conditions continue to surprise on the upside, the manufacturing sector enjoys tailwinds from a stronger global economy and with the pressure from past surges in input costs somewhat easing, manufacturers are also offering higher pay increases than they did earlier this year’.
In a bid to incentivise job hunters and drive interest, employers are offering higher salaries and increasing advertised salaries on job postings, making it easier for job seekers to find their next best opportunity.
Food Manufacturer and Confectionery firm, Tunnocks is one of the many manufacturers whereby its workers will be benefiting enormously from the pay rise, and it’s expected that they will see an increase of over 8.7% over the next two years. Unite Union announced a pay rise to the firm of over £1,500 for most of its full-time workers, and stated that its salary boost would negotiate growing inflation with its workers.
However, year-on-year jobs in the Apprenticeships and Training sectors have fallen for this industry, and therefore it is essential that employers address this issue to ensure that the quality of workforce is not compromised. With the apprenticeship levy now firmly in place, the sector could still be on for a resurgence in the rest of 2017.