EMPLOYEES in the manufacturing industry are seeing their wages reflect economic recovery according to the latest pay data from manufacturers’ organisation EEF.

The data shows that the average pay settlement in the six months from February to July was 2.6 per cent, which is an increase on last year where pay settlements averaged out at 2.4 per cent.

Furthermore, pay deferments and freezes have continued to fall, with the three month average for freezes in July this year running at just 6.4 per cent compared to 14.6 per cent in July 2013.

The news follows date last week which showed that earnings are struggling to recover across the wider economy. In contrast, EEF’s findings suggest that manufacturers are rewarding their employees after a very difficult economic period.

Employers are also countering the effects of skills shortages by paying above-inflation awards to retain and attract key staff.

Richard Halstead, a regional director at EEF, said: "Manufacturing pay continues to run ahead of the wider economy with signs that the pressure on household budgets, at least for those in industry, is starting to unwind.

"After many challenging years, manufacturers now seem to be in a position to pay their employees back for their support in keeping jobs and businesses going.

"But while business across the sector is on the up, affordability will remain a key consideration in future pay deals as manufacturers grow in confidence that the recovery is secure."