Average earnings down by 13.4% since 2007

Average earnings not recovered from recession

In an article by GMB new analysis of the 2015 Annual Survey of Hours and Earnings (ASHE) shows the real value of earnings in 6 of the 9 main occupational groups has not recovered from the recession in 2008.

Workers in caring, leisure and service occupations carrying heaviest burden from recession as earnings in real terms are down by 15.4% from 2007.

Overall in 2007 average earnings for all employees were £30,015. In 2015 average earnings have increased by 12.2% to £33,689. During this period inflation has been 25.6%. This still leaves average earnings for all employees 13.4% below 2007 level.

The worst hit group has been workers in the caring, leisure and other service occupations group of jobs in the UK which is still 15.4% below its value in 2007. Overall in 2007 earnings for this group were £16,455. In 2015 earnings have increased by 10.2% to £18,130.

Jobs in this occupational group where a comparison can be made include ambulance staff (excluding paramedics) who have seen real value of earnings drop by 19.6%, childminders have seen a drop by 13.7%, hairdressers & barbers, 12.3%, caretakers 11.8%,beauticians 11.1%, residential wardens 8.3%, housekeepers, 7.7%, travel agents 4.6% and dental nurses 2.9%.

The next worst affected occupational group are the elementary occupations where the real value of earnings for full time workers is still 14% below its value in 2007.

What the GMB General Secretary has to say…..

Tim Roach, GMB General Secretary 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 2007 the cumulative inflation rate has been 25.6%. During this period pay in the UK has gone up by 12.2% which has left the pay of the average full time worker in the UK down by 13.4% in real terms. Some occupations have been worse hit than others and most have a long way to go to get back to the level where they were before the recession.

This has had a deflationary impact on the economy and has also impacted on 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 the lost ground.”

Earnings Data 2007 to 2015

Average earnings