Four in 10 UK employees expect a pay rise within the next year despite the impact of the coronavirus crisis on the economy, according to a new study by job board CV-Library.
Some 41% of Brits are still optimistic about their pay-check growing over the next 12 months even though the UK economy suffered its largest-ever contraction and officially entered a recession in the second quarter, as the coronavirus lockdown took a heavy toll on economic activity. Economic output declined by a record 20.4% between April and June, according to data from the Office for National Statistics (ONS).
Women are slightly more likely than men to expect a pay rise this year with 42% of women reporting this compared with 41% of men, in the survey of 1,100 UK professionals.
The younger generations are also more confident about getting a pay rise with 60% of those aged between 25 and 34 expecting a raise in the coming year, followed by 45% of 18- to 24-year-olds.
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Employees in Liverpool are most likely to expect an increase in pay, with 71% expecting a raise. This is followed by Aberdeen (60%), Edinburgh (55%), Exeter (55%), Sheffield (53%), and Manchester (52%).
Some 44% of Londoners expect to see their pay packets grow within the next 12 months.
However, only 19% of workers believe they’ll be offered a promotion during the next year.
Again, younger people are more optimistic when it comes to the prospect of a promotion, with those aged 18 or under the most confident (60%), followed by 18-24-year-olds (39%), and 25-30-year-olds (29%).
Lee Biggins, founder and CEO of CV-Library said: “It’s understandable that professionals are looking to regain some of their lost income in the coming months, particularly if they’ve been placed on furlough. However, the government’s Job Retention Scheme will come to an end in October and a second wave of the virus could make the job market even more competitive in 2021.
Over 9.5 million people have been furloughed by their employer under the government’s job retention scheme during the coronavirus pandemic, which sees the state pay 80% of furloughed staffs’ wages up to a maximum £2,500 per month.
The scheme is set to run until the end of October but is already winding down, with employers having to contribute to the cost of the scheme from August. Experts fear the end of the scheme could herald a surge in redundancies as many find they don’t have a job to return to.
Of professionals that are currently unemployed, half (51%) are confident that they’ll find a new job in the next three months, CV-Library found.
The younger generation continues to be the most confident, with 64% of under 18s expecting to find a role in three months, followed by 61% of 25-34-year-olds and 60% of 18-24-year-olds.
“The data clearly shows that young professionals have a great deal of confidence in the job market; which is refreshing given that we know they’ve been hit hard by the pandemic. While we are seeing an increase in the number of job opportunities available, job seekers may find that there is more competition for top roles,” said Biggins.
“If you’re expecting a pay rise or promotion in the next year, it’s important that you remain realistic with your expectations. Many businesses have struggled during this difficult time and may not be able to offer you exactly what you want. That said, it’s still possible to secure a great offer. Just be sure to go to your manager with clear justifications and evidence for why you deserve that pay rise or promotion,” he said