IT contractors have been warned that it may be some time before wages reach pre-recession levels again.

The Labour Research Department claimed this week that the outlook for the average's worker's pay is weak, with pay rises for employees still lagging behind inflation.

This report showed that the median pay rise in 2009-10 was two pre cent, meaning workers are losing out against the cost of living.

Reacting to the news, Stephen Overell, associate director of the Work Foundation, said that this is fairly likely to be a long-term trend.

Mr Overell explained that many workers have had many pay freezes while others have only seen very minor rises, yet this will take some time to feed through into the economic climate and be reflected back in wage settlements.

"I think a lot of businesses are under a great deal of pressure, they are still seeking to minimise their costs as much as humanly possible," he said.