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Latest report shows consistent wage drops


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.”

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