Commenting on continuing speculation, fuelled by the CBI, about possible increases in the minimum wage, Charles Cotton, CIPD Reward Adviser, said: While it is true that any dramatic increases in the minimum wage risk damaging business and the economy, the reality is that modest increases are unlikely to be the biggest motivator behind pay pressures at the moment. Sectors such as social care, retail and hospitality are traditionally seen as likely to find the minimum wage onerous, but with all experiencing difficulties recruiting and retaining staff, the minimum wage is unlikely to be the main upwards pressure on wages.
Official figures show wage inflation remaining subdued despite a continuingly tight labour market. A modest increase in the minimum wage is unlikely to dramatically change this picture.
Ongoing recruitment difficulties
Ongoing recruitment difficulties mean modest minimum wage increase unlikely to have major impact on wage inflation
