Manufacturing pay deals flat says EEF/JAM data

The survey shows that the average settlement level for the three months to the end of March was 2.4%, unchanged from the three month period to the end of February. The proportion of pay freezes fell was also unchanged at 9% of settlements, though the fact they remain evident highlighted the pressures companies are under, says EEF. Commenting on the figures, EEF chief economist Lee Hopley, EEF chief economist, said that despite inflation remaining above target, this was not being reflected in pay pressures for manufacturing companies. "So long as the economic outlook remains tough, there is little to suggest that there will be any change to this position," she continued. JAM Recruitment chief executive John Morris said that while employers were clearly maintaining the cautious approach to pay that had characterised the past two years, the slight decrease in the rate of pay freezes compared with the average figure for 2012 was perhaps an early reflection of a new optimism in the market.