TITLE

Low unemployment could trigger wage inflation

PUB. DATE
June 2004
SOURCE
Management Services;Jun2004, Vol. 48 Issue 6, p3
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article reports that the state of low unemployment in Europe could trigger wage inflation, as of June 2004. Continuing falls in the level of unemployment combined with growing economic confidence and the stated intention of employers to recruit more staff during the quarter could begin to place upwards pressure on wages, according to the Chartered Institute of Personnel and Development (CIPD), the professional body for those involved in people management and development. April's quarterly HR Trends and Indicators survey, published by the CIPD, revealed that 53% of employers plan to recruit in the quarter. Rcruitment intentions are strongest in the finance and public administration sectors. Duncan Brown, CIPD Assistant Director General said that such further reduction in unemployment figures will place increased pressure on organizations trying to recruit staff, and could potentially fuel wage inflation. In addition, Brown stated that with officially recorded unemployment at record low levels, and employers planning to step up recruitment in the coming quarter, organizations are going to find it increasingly difficult to recruit suitably skilled staff, which could lead to upwards pressure on wages.
ACCESSION #
13700215

 

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