Earnings £13 less than a decade ago

Average earnings are still £13 a week down from a decade ago, an economic think tank has reported.

Just over two million more people have found work since the financial crash of 2008. More than a million of those are from the poorest third of households, the research by the Resolution Foundation showed.

However, with 800,000 workers on zero-hours contracts, job insecurity was still “widespread” and real average earnings are still £13 a week less than a decade ago, the foundation said.

Resolution Foundation senior economic analyst Stephen Clarke said the higher employment rates were “a muchneeded bright spark amidst the gloom of the pay squeeze”.

He said: “Lower income families have accounted for the majority of Britain’s jobs growth, showing that pushing for full employment can boost living standards.

“But while employment is at a record high, Britain is still some way off full employment and too much work remains low paid and insecure.”

A new policy to boost employment for people with disabilities or ill health could see a million more people in work, Mr Clarke said. “This would make the single biggest contribution to achieving full employment and boost living standards,” he said.