LONDON, Feb 13 Reuters British employers expect to raise wages for their staff by the most in at least 11 years but the 5 pay deals for workers would still fall well below expected inflation, a survey published on Monday showed.

With the Bank of England fearing the surge in inflation could be harder to tame if pay deals keep rising, the Chartered Institute of Personnel Development CIPD said 55 of recruiters planned to lift base or variable pay this year as they struggle to hire and retain staff in Britain39;s tight labour market.

Expected median annual pay awards in 2023 rose to 5 the highest since CIPD records began in 2012 from 4 in the previous three months.

More than half of respondents reported having problems filling vacancies, and nearly one in three expected similar issues in the next six months.

Skills and labour remain scarce in the face of a labour market which continues to be surprisingly buoyant given the economic backdrop of rising inflation and the associated costofliving crisis, Jon Boys, senior labour market economist at the CIPD, said.

The survey also showed the gap between public and private employers39; wage expectations widened. Planned pay settlements in the public sector fell to 2 from 3 in the quarter before, compared to 5 in the private sector, the CIPD said.

The results highlighted the squeeze on living standards as key workers including nurses, teachers and public transport staff stage a series of strikes over pay and work conditions….