More than half of Welsh businesses are set to increase wages in 2014 according to the Barclays Employers Survey 2014.

The survey, which questioned 684 UK businesses, has revealed that 57 per cent of Welsh businesses are planning to increase wages in the year ahead.

Despite rising living costs across Wales, 42 per cent of respondents also said that wage pressure from employees wasn’t an issue, whereas 50 per cent said it was a concern to some extent and eight per cent said it was a major concern.

John Union, head of corporate banking, Barclays Wales region, said: “After an extended period of wage freezes, which have been tough for employees, it’s good to see that so many employers will be increasing wages in the coming year. This can only have a positive impact on employee morale. However, it will increase inflationary pressure as the year progresses.”

Prior to last week’s falling unemployment announcement, only 13 per cent of Welsh respondents thought that unemployment levels would fall sufficiently to trigger an interest rate rise this year.

Almost a third thought it would be in 2015 and 40 per cent of the Welsh companies surveyed thought it would be 2016 or later.

John Union said: “While no one knows when interest rates will rise, businesses should not be complacent. It would be prudent for firms to ensure they have sufficient cash flow to absorb the increase when it comes.”

Another focus for Government – apprenticeships - also seems to resonate across Wales, with 39 per cent of Welsh businesses claiming they took them on in 2013, more than any other region in the UK.

Additional findings:

• Just over a quarter of Welsh respondents (27 per cent) think the Eurozone crisis is behind them. More than half (56 per cent) say it’s neither any worse nor any better, while 14 per cent think it’s ahead of them.

• A total of 77 per cent of Welsh businesses still believe sales increases lead to job creation, rather than believing job creation can drive sales.

• Zero hour contracts have been the topic of much debate, and Barclays’ survey shows that the vast majority of Welsh businesses (78 per cent) won’t be creating them this year, although 16 per cent plan to – with the Healthcare and Facilities Management sectors most likely to do so (both 23 per cent). The largest companies are most likely to create zero hour contracts, with 35 per cent of them saying they intend to.