Fewer workers resigned, retired or were made redundant in Britain in the past year, leading to a lower turnover in staff amid rising unemployment, according to new research.

A study by the Chartered Management Institute of 350 firms showed that employee turnover fell from 12.3 per cent to 10.5 per cent the previous year, while just 3.9 per cent of workers resigned, the smallest total for five years.

Just 0.2 per cent of those questioned had decided in the past year to retire, but staff loyalty was not leading to big pay rises, with increases averaging 2.2 per cent last year.

Ruth Spellman, chief executive officer of CMI, said: “It seems that UK employees are more content to stay in their current jobs. Despite increasing demands on time and pressure to deliver more for less, employees have retained some sense of loyalty to their employers and their efforts are being noticed.”