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A new report from Willis Towers Watson predicts salaries in the private sector will rise by on average 2.4% next year.
Private sector workers are set to see a small rise in their pay in 2021, according to a new report, which adds that different sectors will see higher or lower increases.
Willis Towers Watson’s latest Salary Budget Planning report says average pay increases in the private sector stood at 2.2% this year and are predicted to rise to 2.4% next year with pay in badly hit sectors taking longer to recover. The report says the most pessimistic industries in the UK are Leisure and Hospitality, offering just 1.4% average wage increases in 2021, Construction, Property and Engineering (1.8%) and Automotive (1.9%).
This contrasts with the industries that are most optimist about next year’s prospects including Insurance (2.9%), Fintech (2.8%) and Business and Technical Consulting (2.8%). Nevertheless, Retail, which has been badly affected, is also among the industries expecting the highest pay rises in 2021, at 2.9%, which the report says may be a reflection on buoyant sales for some online retailers and a reaction to the high number of pay freezes (48%) taking place this year at others.
The report also states that the number of companies expecting a pay freeze will fall. This year saw a third of private sector companies freeze pay increases as they were curtailing costs, but the report says this is expected to fall to just over 3% of companies in 2021.