Employee pay rises will be unable to keep pace with soaring inflation this year, leaving households out of pocket just as the cost of living crisis hits hardest.
“Real wages” fell by 1.4pc in 2021, the largest slump since 2014, as inflation wiped out a 3.4pc bump in pay, data from the Office for National Statistics has shown.
Employers are expected to raise staff wages by 3pc in 2022, according to the Chartered Institute of Personnel and Development, a trade body. It will be the biggest increase in almost a decade, but will be dwarfed by rampant inflation, which is expected to peak at 7.25pc in April.
Jack Kennedy, of jobs website Indeed, said: “While inflation is making life tough for workers, the soaring cost of energy and materials is putting pressure on many businesses’ bottom lines too.
“This may in turn reduce the ability of many employers to offer pay increases to their staff.”
Wage growth slowed in January to 3.4pc, down from 4.1pc in December. But a handful of jobs have enjoyed huge pay increases over the past year, giving employees in these roles a fighting chance of beating inflation.
Jobs with the biggest pay rises
Sales consultant
After two years of pandemic uncertainty and challenging trading conditions, companies are desperate to boost revenues and bolster depleted coffers. Employees who can help secure new customers are in high demand.
The average salary advertised for a sales consultant has jumped by a fifth to £29,000 in the past year, according to Indeed. The rise is almost four times more than the 5.4pc rate of inflation recorded in January.