Public sector raising pay to a new record

A new report has shown that employers within the public sector are raising pay in response to the challenges of finding new staff.

The CIPD’s Labour Market Outlook revealed that, perhaps unsurprisingly, the health and education sectors are particularly struggling with recruitment, with 60% of education employers and 55% of healthcare employers reporting hard-to-fill vacancies.

In response to current challenges, expected pay awards in the public sector have risen to 3.3%. This is the highest level seen in the CIPD’s report since tracking began in 2012

However, this figure still falls behind the private sector median base pay expectations of 5%.

Jon Boys, senior labour market economist for the CIPD, commented on the findings, “The labour market may have become less competitive in recent months but there is still strong demand for workers across the economy, with public sector employers finding it particularly hard to find the staff they need.

“Pay will be key for many people in the cost-of-living crisis but employers should look beyond this to the full range of measures they can take to boost how they recruit and retain their employees.

“These include more inclusive approaches to recruitment, creating more flexible jobs, as well as investing in training and developing line managers’ people management skills.

“The UK Government could also help employers upskill their workforce and fill skills gaps by reforming the Apprenticeship Levy into a more flexible skills and training levy.”

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