Share

UK real earnings sink to decade-low

London - British workers' real earnings fell to levels not seen in more than a decade in the 12 months to April but there were also signs of above-inflation wage growth for many employees, a broad survey of incomes showed.

Adjusted for inflation, weekly earnings dropped by 1.6%, the Office for National Statistics said, figures that the opposition Labour party said showed the failure of the government's economic record.

Inflation-adjusted earnings have fallen every year since 2008 and are now at levels last seen in the early 2000s, the ONS said, citing its Annual Survey of Hours and Earnings.

An increase of one pound ($1.57) in median gross weekly earnings for full-time employees represented the smallest annual growth since the ASHE records began in 1997, it said.

Labour lawmakers, who plan to campaign ahead of national elections next May on promises to restore living standards, sent out messages on Twitter highlighting the fall in inflation-adjusted earnings.

But finance minister George Osborne pointed to other details in the survey, saying an average 4.1% rise in pay for people who have been in their job for more than a year and a fall in the gap in pay for men and women to its narrowest on record showed his economic plan was working.

The difference between the weak overall earnings growth and the stronger figure for people in work for over a year could reflect the creation of many low-paid jobs, one of the factors behind the sharp fall in British unemployment since last year.

Osborne and Prime Minister David Cameron hope that signs of a pick-up in weekly earnings in recent months combined with a fall in inflation to nearly a five-year low will help convince voters to give them a second term in the elections.

READ THIS NEXT: UK rates likely to stay at record lows
UK services growth slows sharply
UK consumer confidence tumbles



We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.04
-0.3%
Rand - Pound
23.66
-0.2%
Rand - Euro
20.22
-0.3%
Rand - Aus dollar
12.19
+0.2%
Rand - Yen
0.12
-0.0%
Platinum
971.50
-0.5%
Palladium
1,022.00
-0.1%
Gold
2,387.72
+0.2%
Silver
28.18
-2.4%
Brent-ruolie
90.10
-0.4%
Top 40
66,902
-2.2%
All Share
73,000
-2.1%
Resource 10
61,638
-3.6%
Industrial 25
98,321
-1.9%
Financial 15
15,650
-1.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders