UK income falls 3.5% in real terms

Graham_Devon

UK households are facing pay cuts in real terms of more than 3.5% as salary increases fail to keep pace with inflation, official figures reveal.

The median salary for a full-time worker in the UK rose 1.4% in 2011 to £26,244, against a headline CPI inflation rate of 5% or higher, according to the Annual Survey of Hours and Earnings from the Office for National Statistics.

Overall earnings growth was even lower, with the average UK salary increasing just 0.5% on 2010 levels once part-time workers are included.

This was driven by a shift to part-time work as a result of high unemployment and low economic growth: the indicative figures for 2011 included 380,000 fewer full-time workers than a year before, with 72,000 more part-time employees.

Progress in closing the gender pay gap has also slowed, with women in full-time employment earning on average £5,409 less than men – the gap narrowed by £179 in 2010 compared with £558 in 2009.
At such a rate, it would take until 2041 for the earnings of women working full-time to match those of men.

The headline figures also masked sizeable falls in pay for some of the UK's lowest-earning professions – and sizeable salary boosts for senior managers and directors.

This particular picture isn't a rosy one.

http://www.guardian.co.uk/money/2011/nov/23/uk-household-earnings-fall

380,000 fewer full time workers too - that's a pretty big number. Article goes further, and looks at what makes up the average of 1.4%. And again, it's professionals, directors and cheif execs.

People such as farm workers, postal workers, labourers etc actually saw their pay cut by 0.9%, while senior corporate managers enjoyed a 7.1% average increase, pulling the figures up. Waiters and waitresses? Down 11%+.

MrRee_2

If this is true, then it's a disgrace!

I do note that high earners have had very decent payrises - I would say I know personally, but the green monster of jealousy would come along and the venom would ruin the thread ...... so, I'm saying nowt!

Just it is disgraceful if the average payrise was only 1.4%

Going4TheDream

I had a 2.5% rise, not a great deal but much better than many.

Seems to get eaten up by rising living expenses/bills etc though so it kinda feels I am worse off as I actually have less disposable income even though my income is greater.......

ruggedtoast

You're in fire today Graham. On fire!

Road_Hog

MrRee wrote: »

If this is true, then it's a disgrace!

I do note that high earners have had very decent payrises - I would say I know personally,

It most certainly is true.

Another way income is cut, is when whenever someone leaves a job, they are often replaced by someone on a lower wage. So basically wages are being cut.

But then they can afford to do that, because we're importing so much labour.

Thrugelmir

Road_Hog wrote: »

But then they can afford to do that, because we're importing so much labour.

Labour markets are increasingly global. Some else would happily earn a quarter of the wage you earn for doing for your job.

Imported labour has been beneficial to the UK over the centuries.

MrRee_2

We are having a terrible time recruiting at the moment, really terrible.

We get plenty of applicants, but none with the skills we require. This drives up the wages of those we can get and of those we can hang on to.

One young man in my employ has received 16% in 6 months and I am recommending he get another 3% in December - which will be approved - I do not want to lose him.

geneer

MrRee wrote: »

We are having a terrible time recruiting at the moment, really terrible.

We get plenty of applicants, but none with the skills we require. This drives up the wages of those we can get and of those we can hang on to.

One young man in my employ has received 16% in 6 months and I am recommending he get another 3% in December - which will be approved - I do not want to lose him.

The sockie is an employer now.
Not long until we hear about his space station on the moon.

MrRee_2

geneer wrote: »

The sockie is an employer now.
Not long until we hear about his space station on the moon.

We ALL can't be non achievers like you, you DO know that - don't you???????????

You sound really 'Special' ...

Going4TheDream

geneer wrote: »

The sockie is an employer now.
Not long until we hear about his space station on the moon.

Seems a bit 'Wallter Mitty to me, perhaps best not to 'encourage' him

MrRee_2

Going4TheDream wrote: »

Seems a bit 'Wallter Mitty to me, perhaps best not to 'encourage' him

AH, I see now - you are 'geener' too .........