Workers in the North East ‘earn less than 10 years ago’
WE ARE £8 PER WEEK WORSE OFF ON AVERAGE, SAYS REPORT
WE’RE an average of £8 a week worse off than we were 10 years ago, according to a think tank report.
The Resolution Foundation warned wages had fallen in real terms despite a jobs boom.
Although wages have risen, the rise has not kept up with inflation. It means wages have actually fallen by 2% in real terms.
At the same time, the employment rate in the North East has risen from 66% of the population in 2010 to 71.1% now.
The analysis shows that as well as benefiting lower-income households, employment growth over the last decade has particularly helped those who have traditionally struggled to find work such as people from ethnic minority communities, people who few qualifications and the disabled.
But many disadvantaged groups still face significant “employment gaps” compared with the rest of the population, the think tank says.
Stephen Clarke of the Resolution Foundation, said: “Britain has experienced a huge living standards slump but its incredible employment record has provided a much-needed bright spark amid the gloom of the pay squeeze.
“We have avoided the unemployment highs of previous recessions and seen employment reach record levels, with over two million more people in work compared to a decade ago.
“But even better than the scale of Britain’s employment growth is who is getting those jobs. 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.
“With fewer than half of people with a disability or ill health currently in work, targeted support for these groups holds the key to achieving further employment progress.
“Steps to provide advance notice of shifts and a right to a regular contract for those working regular hours on a zero-hour contract would also help those in work who have precious little job security.”
Nationwide, the figures show pay has fallen by £13 a week. The drop is highest in London, where wages are also highest.
Shadow Chancellor John McDonnell said: “These figures show the disastrous impact of nearly a decade of austerity on earnings, with workers in the UK losing out under Tory rule.
“The findings are a stark example of how brutal Tory pay restraint and austerity has led to a crisis in living standards for families.”
A Government spokesperson said: “We have seen more people in work than ever before and the National Living Wage has helped to deliver the fastest earnings boost for the lowest-paid in 20 years.
“Through our Good Work plan we are going to give millions major new rights and protections, including increased financial security for workers on flexible contracts with a new right to request a more stable contract.”