Employees will see their pay jump 3% this year

Employees will see their pay jump 3 per cent this year as bosses battle to attract and retain talent, according to research. 

Seven in ten firms said they plan to add workers while just one in ten intend to lay off staff, leading to the pay boost. 

The average worker will receive a 3 per cent rise this year, according to a survey by the Chartered Institute of Personnel and Development (CIPD), which it said is the biggest jump in ten years. 

But the increase will still see wages for most workers fail to keep up with inflation. 

This will mean a real-terms pay cut for most families as they grapple with a cost of living crisis. 

CIPD labour market economist Jonathan Boys said: ‘Even though businesses anticipate record pay awards this year, most people are set to see real wages fall.’ 

But Boys said firms are offering flexible working and extra training to retain staff.