New figures show that the average wage has fallen by 3% since 2001, when records began. This is the fastest fall since 2001.
The Office for National Statistics stated that the average annual increase in average pay was 4.7% in the three-month period ending June. This was against a background of low unemployment and high job openings. However, total pay, including bonuses, increased by 5.1 percent.
However, once inflation is taken into account, The figures show the average workers’ salary has fallen for the 9thMonths consecutive.
And with the effects of last year’s furlough adding around 0.5 percentage points to measures of annual pay growth, the true scale of Britain’s pay squeeze is even deeper than official figures suggest.
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Ben Harrison, of the Work Foundation, is a think tank located at Lancaster University.
According to the report, those in the most unsecure jobs were in danger of not knowing what to do next to address the rising cost of living.
He said: “The six million workers in severely insecure jobs will be hardest hit and are already running out of options. Many people have tried to cut back on spending and work more hours, but they continue to face uncertainty.
“With fuel bills about to soar again, hardworking families cannot wait any longer. The prime minister must return from holiday and agree a comprehensive package of support with the two Conservative leadership candidates.”
The current inflation rate is 9.4%, which is a record high for the country. This means that lower wages will have a greater impact on inflation.
The ONS also reported that the number people working full-time has increased. Part-time workers had been increasing since early last year, following large drops in the early stages Covid epidemic. But, this number dropped between April and June.
The unemployment rate remained at 3.8% for the three months up to June. This is close to its lowest level since 1970s. However, the number vacancies for jobs fell for the first-time since summer 2020, which suggests that there is a lower demand for employment.
Matthew Percival, CBI director of employment, said: “Employers are doing their level best to support staff through this period, but the vast majority can’t afford large enough pay rises to keep up with inflation.
“The incoming government will need to add greater flexibility to the apprenticeship levy, review the Shortage Occupation List and aligning skills gaps with education and training.”
Although vacancy levels are down from their record highs, there is still a job market active with nearly a million (948,000), people moving into jobs in the last three month. This is well above the 700,000.