The organisation says unemployment is now expected to peak at 8.7 per cent (2.7 million) in mid-2012 rather than 9.5 per cent as previously forecast, due in part to lower-than-expected unemployment in the first quarter of this year.
Dr John Philpott, the CIPD's chief economic adviser, said a possible factor may be the moderate rise in pay in the last few months as opposed to sharp, upward hikes.
"Just as pay freezes and pay cuts protected jobs in the recession, the ongoing pay squeeze is helping our anaemic economy support employment. This is clearly preferable to a further very sharp rise in unemployment," he explained.
However, recent data compiled by the Recruitment and Employment Confederation and KPMG for the June Report on Jobs showed that there were marginal rates of inflation in pay for both permanent and temporary workers in June, signalling returning confidence among the country's firms.
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Posted by John Oak and Wayne Bly
Source: The Sales Director News