Manufacturing industry pay freeze - graduate jobs

Graduates hoping for a pay rise in the manufacturing sector may be disappointed as more than three out of four firms have frozen wages, according to a report.

The study of 158 settlements covering 25,766 employees carried out by the Engineering Employers Federation found that average deals had dropped from 0.8% to 0.3% in the last few months - the lowest level since the group's records began in 1987.

The extent to which companies have responded to the severe economic conditions is illustrated by the drop in settlements from the three months to the end of July last year. The average settlement level then was 3.2%.

"This further sharp fall in manufacturing pay settlements is mainly due to the exceptionally high proportion of companies that are now freezing pay," said David Yeandle, the EEF's head of employment policy.

"Given the tough economic conditions and the need for companies to respond, there are no signs that this pattern will change in the near future."