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
Is inflation as important as people say?
While we hear an awful lot about the rate of inflation and what impact it can have on everyday life and the economy is it really as important as people make out or are there more important things for the economy?
Inflation is this the rate at which a product, service, cost or an income increases in the future and is vital for the prosperity of economies around the world. If for exam...
What will Gordon Brown say at the World Economic Forum?
When Gordon Brown left for the World Economic Forum earlier this week he appeared upbeat and positive for the future. However, a damning attack by the International Monetary Fund earlier this week has blown apart his reputation for prudence and economic prowess. The suggestion that the UK economy is the weakest in the developed world and will be among the last to recover when the world economy imp...
Read More48 UK firms paying less than minimum wage
24/03/2015 Ministers have named and shamed 48 UK firms, including a number of high street shops, who have failed to pay their employees the minimum wage. Government Ministers have claimed that the businesses owe their workers a total of £162,000 and face fines of up to £67,000. The companies that have been accused now have 28 days to respond to the allegations. Some notable employers...
Read MoreBritish Airways and Unite in secret talks
The British Airways management and the Unite union are this evening in secret last-ditch talks to try and cut short the ongoing cabin crew strike. The situation has reached critical point with the company stretched to the financial limit and the union seriously concerned about the future of many of their members. While earlier talks were inadvertently disrupted by protesters it seems that both par...
Read MoreFashion group Alexon rejects bid approach
Alexon, the fashion clothing group which owns brands such as Ann Harvey and Bay Trading, has today announced receipt of an unsolicited approach for the business. While the offer has been rejected out of hand and no details of the proposed terms released many believe this is a sign that investment capital is returning to the market and the UK retail sector could be over the worst.
Wh...