Pay values slump to 2003 levels
The real value of average earnings has fallen back to 2003 levels following 30 years of strong growth, new research has revealed.
A study by the Office for National Statistics showed three consecutive years of wage decline. Average earnings peaked in 2009, but since then wage increases have been outstripped by inflation.
Male workers in private firms have suffered the biggest decline in earnings since the recession in 2008, the ONS said. Their average earnings last year were worth less in real terms than in 2002, the research showed.
A similar trend was found in the public sector, although the decline was less marked.
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Male workers in the public sector saw their real earnings decline by an average of 2.1 per cent a year between 2010 and 2012, compared with 3.1 per cent in private firms, said the ONS.
Paul Kenny, general secretary of the GMB union, said: “This explains why the economy is heading towards a triple-dip recession. Across the board average incomes are down 12 per cent in real terms since the start of the recession.”