The recent growth in the number of people employed is expected to slow again in the coming months, the Chartered Institute for Personnel and Development (CIPD) has said.

In a survey of 1,000 employers, CIPD found just over half of firms – 54% – would be increasing payrolls, down from 65% last year, with one in five companies adding that they would be cutting workers in the first three months of this year.

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The current jobless rate, 7.1%, has fallen fast in recent months with the Bank of England maintaining that they would not consider lowering interest rates until level fallen to 7%. T

The Bank believes that the economy remains too fragile for higher borrowing costs despite jobs improvement.

CIPD also said that according to the survey pay rises were unlikely to overcome inflation, something that was needed to restore standards of life. Almost three in four employers said pay rises will increase 2% or lower in 2014 but inflation has only fallen to 2%.

(MH/JP)