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Despite an economic upturn soon expected, employers are anticipating another difficult year ahead.

Of 5,400 businesses surveyed, 63 per cent say they are planning wage freezes or pay cuts this year, while 18 per cent are considering the removal of benefits, such as bonuses and gym membership, according to research from the British Chambers of Commerce (BCC).

David Frost, director general of the BCC, says: ‘It’s clear that another tough year is in store for the private sector. Thanks to businesses and their employees, who have made huge efforts to avoid extra redundancies during this downturn, unemployment is lower than most expected.’

The number of people out of work will continue to rise until the summer of 2010 before peaking at 2.8 million, says the Chartered Institute for Personnel and Development.

According to the Office for National Statistics, unemployment has now reached 2.49 million.

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