Producers face a battle to draw and hold employees, inflicting some to hike wages by as much as 14 per cent, in response to a survey.
Make UK, which represents 20,000 firms, mentioned inflation and employees shortages have been piling stress on the sector.
Wrestle: Make UK mentioned inflation and employees shortages have been piling stress on the manufacturing sector
Simply 2 per cent of companies are protecting pay flat this 12 months, as towards greater than a fifth this time final 12 months when the nation was in lockdown.
Two fifths boosted pay by between 2 per cent and 14 per cent and round half deferred selections to see how inflation develops.
Whereas the very best enhance, 14 per cent, was a giant leap from final 12 months’s 5.8 per cent, most employees will solely see a pay rise between 2 per cent and three per cent – an efficient pay minimize with inflation predicted to hit 6 per cent by the spring.
Make UK’s Verity Davidge mentioned: ‘Whereas some firms clearly really feel they should reward employees for the final couple of difficult years, others are dealing with a battle to draw and retain key abilities.