Studies by the Chartered Institute of Personnel and Development (CIPD) and tax group KPMG have shown private sector workers can expect salary increases 0.5% above their public sector counterparts.
John Philpott, chief economist at the CIPD, said: ‘With the economy continuing to grow, recruitment is picking up in the private sector.
‘Prospects remain healthy in the private sector, in contrast to the public sector where lower salary increases are expected, alongside redundancies running at a higher level.’
The studies also revealed a north-south divide in recruitment targets with 41% of companies in the south-east planning to recruit additional staff compared with 33% of companies in the north-east.
Michael Carter, people services partner at KPMG added: ‘The survey shows that while recruitment intentions have improved since last year this trend is not repeated universally across the country.’