Union says average wage has fallen by 13.6%

30 December 2015

wages According to the GMB Union, the value of average earnings for full-time workers, has fallen by 13.6% over the past seven years.

The largest drop has been in London, where the study says that the real value of average pay has dipped by 23.2%. Following that was a 16% drop in the South East, then the East Midlands (15.7%), Yorkshire and the Humber (14.9%), North West (12.4%), West Midlands (11.8%), East (11.5%), Wales (11.3%) South West (10.6%), Scotland (6.7%) and North East (5%).

Paul Kenny, general secretary of the GMB, said: "While we have seen a growth in the number of workers as the population has grown, average pay has simply not kept pace with inflation."

"Since 2008 the cumulative inflation has been 20.6%. During this period, pay in the UK has gone up by 7%, which has left the pay of the average full time worker down by 13.6% in real terms."

"This has had a deflationary impact on the economy and has also affected the tax take by the Chancellor to pay for essential public services. In the autumn statement, the Chancellor predicted that the economy would grow steadily each year to 2020 when it would be 12% bigger than now."

"Workers in the UK will want to see that growth translating into pay rises above inflation to make up for lost ground."

TOPICS:   Banking   Investments   Economy

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