Latest report shows consistent wage drops
31/01/2014
The trend of real wages dropping since 2010 is now the longest period of falls since 1964, according to the latest report from the Office for National Statistics (ONS).
‘Real wages’ is the calculation of average earnings when the rising cost of living, or inflation, is taken into account. Furthermore, the report took account factors such as the difference in inflation between what is being produced and what is actually being consumed, therefore helping to make the figures more accurate.
The results showed that real wages have fallen on average by 2.2% annually since the first three months of 2010, the longest trend for at least 50 years. Factors blamed for the continuous decline included shorter working hours, and reduced output, which are a result of the 2007 financial crisis.
Frances O’Grady, TUC General Secretary claimed that “British workers have suffered an unprecedented real wage squeeze.” Furthermore, O’Grady went on to point out that average pay rises have weakened every decade since the 1980s, despite increases in productivity, growth and profits.
Prime Minister David Cameron’s official spokesman acknowledged the figures as a result of the 2008-09 financial crises, and pointed to the long-term economic plan that aims to address such issues.
However, Chris Leslie, the Labour Shadow Chief Secretary lambasted the conservative’s attitude by stating: "The Tories are so out of touch they deny there is a cost-of-living crisis. But these figures show the biggest fall in real wages since records began 50 years ago.”
Need Advice
If you’re need to ask a financial question then please contact our financial advisers online or over the phone to get help with your query.
Share this..
Related stories
Recent rate rises shake Brits' security
People in the UK have told Lloyd's TSB's monthly survey team that they expect a further hike in the interest rate in 2007.According to Lloyd's Corporate Markets poll, 77 per cent of Brits expect another creep in the interest rate, while 13 per cent believe the rate will stay the same and an optimistic seven per cent expect the rate to fall.Because of expectations of a higher interest rate, more pe...
Read MoreIf the fall in the pound is correct has the currency been overvalued for years?
While the fall in the rate of sterling against the euro has caught the headlines the currency has also fallen against the likes of the dollar which has serious implications for both import and export businesses in the UK. However, many people are now wondering, as the currency continues to collapse against the leading currencies of the world, has sterling been overrated and overvalued for many yea...
Read MoreBank urged to provide more liquidity
Calls for the Bank of England to intervene more decisively to arrest the impact of the credit crisis are mounting following the revelation that UK lenders are not receiving the amount funding they are requesting. In a meeting with Mervyn King, the UK's five largest lenders asked for £30 billion to be made available in the Bank's weekly open market auction. However, the Bank has pledged just £13....
Read MoreLord Mandelson and the £400 million sweetener
This weekend Lord Mandelson is said to be in discussions with unions and Magna, the Canadian outfit which is on the verge of acquiring GM Europe. The discussions will revolve around the Vauxhall subsidiary, which has a significant exposure in the UK, and the thousands of jobs which are potentially at risk if the company decides to move production overseas.
This is something of a U-t...
EU watchdog could overrule UK government
It has been revealed today that a new EU watchdog for the financial industry could actually force the UK government to bail out a bank which the EU believed was in trouble even if the UK authorities did not hold the same opinion. While any member state of the EU would have a right of appeal if they disagree with a ruling from the EU watchdog, many people are concerned this is yet another example o...
Read More