Half of the British employers are planning to freeze wages next year, according to a fresh study conducted by the CBI and the recruitment firm Harvey Nash.

It may be noted here that 2010 will be the second consecutive year wage freezes.

The latest employment trends revealed that only 4 per cent employers have plans to introduce inflation-beating pay increases.

Speaking his mind, deputy director of the CBI, John Cridland, said, “Market conditions continue to be very tough, and growth in 2010 will be feeble, so pay is going to be squeezed for some time to come.”

However, on the positive side, number of companies with plans to freeze recruitment has dropped 37 per cent from 61 per cent in the spring. 

In addition, fewer employers foresee the need of extreme measures such as shutdowns or cuts in overtime next year.