Inflation hits workers’ real wages

WAGES have fallen in real terms over the past year, costing workers more than £1,000 on average, a new study reveals.

Pay has been hit by rising inflation, with advertised salaries falling in half of UK cities, especially in the Midlands, said jobs site Adzuna.

Pay for graduates has fallen by more than 4 per cent to £23,600 over the past year, the research found.

Total advertised salaries fell by 2.4 per cent to £32,600 in July, compared with the same month in 2015, the fourth consecutive month of decline. Alongside the “widespread stagnation” in wages, there has been an increase in the number of lower-paid and contract jobs advertised by employers as they hire temporary rather than full-time staff, said Adzuna.

The number of jobs advertised continues to increase, reaching 1.1 million in July, an increase of 26,000 on a year ago.

The biggest fall in advertised salaries has been in the North East, Eastern England, Scotland and London, said the report. Doug Monro of Adzuna said: “After the shock of Brexit, a new Prime Minister and lower interest rates, rising inflation has now entered the ring.

“Not only are advertised salaries falling, but inflation is hitting workers hardest and where it hurts – their wages. Lower-paid roles are becoming more common as tech companies pull back on hiring.

“As we approach the last quarter of the year, the market should see an injection of energy from seasonality and economic stimulus, which could lead to a pickup in more senior and permanent hiring.”