MANY workers are continuing to have their pay frozen, despite hopes the economy was poised for recovery, according to a new report.

A study by the Labour Research Department (LRD) showed a steady fall in the number of wage freezes since the summer, when one in four agreements involved no pay rise. The figure fell to 22% towards the end of the summer, 21% in the three months to September and 14% in the quarter to October, a quiet period for pay settlements.

But the research group said it was not possible to state confidently that the trend will continue to be downwards as the figure may have increased again, according to provisional data for the three months to November, 2009, to 19% of all pay agreements.

“Although there have been periodic decreases since April, it is evident that new deals are still suffering the brunt of freezes, while employers are not showing any obvious signs of relaxing their pressure on pay,” said the report.

Lewis Emery, LRD’s pay researcher, said: “There are known pay freezes coming in the New Year and the continuing rise in unemployment, particularly youth unemployment, means things will be difficult again in 2010.”