Saturday, August 10, 2019

No Pay Rises for Many

Although the lowest-paid workers have seen average real pay rates rise 5%, thanks to increases in the minimum wage pay has effectively fallen for the UK's lower and middle income earners since 2010.
Workers in jobs paying between £9.56 and £12.73 an hour have seen their "real" wage fall 1% since 2010, the Trades Union Congress (TUC) found. Real wage rates adjust the hourly rate for the effect of inflation, the average increase in the cost of goods and services, which erode the spending power of your money.
The pay rate analysis identifies middle income earners, those earning near the median wage rate of £12.73 per hour, as having their earning power eroded since 2010. 
For workers earning between the median wage rate of £12.73 and £25.45 per hour, pay rates have on average fallen 3% in the period.
The TUC analysis shows the 1.1 million highest income earners, those above £25.45 per hour worked, saw average pay rates rise 4% since 2010.
Kate Bell from the TUC says median wages still are not where they were before the financial crisis "so a little bit of pay pick-up in the last couple of months...doesn't mean we're out of the woods yet". 
Bell added: "People in middle earning jobs have seen their pay fall. Jobs like those in construction, the local government in administrative jobs for example you've likely seen your pay go down over this period. That has an impact on your ability to live and ability to pay your bills".

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