From the TUC

Real Wages – back to the ’70s?

18 Jun 2013, by Guest in Economics

As the TUC noted today real wages have been falling for 40 months in the UK, the last time average wages grew by more than inflation came all the way back in November 2009.

The chart below provides some context to this, it uses data from the Bank of England’s Three Centuries of Data spreadsheet to show inflation (in this case CPI), wage growth and  real wage growth from 1855 to 2009.

Real Wages 1855 2009

We are now in our fourth year of falling real wages, something which hasn’t happened since the ’70s. The 1870s that is.

The last real wage squeeze of this duration seems to have been 1875-1878.

This is why the TUC’s latest campaign is entitled,  Britain Needs a Pay Rise.

 

3 Responses to Real Wages – back to the ’70s?

  1. Reasons why we need to fight | PCS Independent Left
    Jul 10th 2013, 10:17 pm

    [...] Read more about this here: http://touchstoneblog.org.uk/2013/06/real-wages-back-to-the-70s [...]

  2. UK unemployment expected to fall as nascent recovery feeds through to jobs – newspapertimes
    Jul 17th 2013, 6:14 am

    [...] of 3.3%, according to official data on Tuesday, meaning real wages continue to fall. The TUC says workers have now suffered falling real wages for more than 40 months – the longest lasting squeeze since [...]

  3. UK unemployment expected to fall as nascent recovery feeds through to jobs | News Vault
    Jul 17th 2013, 7:54 am

    [...] of 3.3%, according to official data on Tuesday, meaning real wages continue to fall. The TUC says workers have now suffered falling real wages for more than 40 months – the longest lasting squeeze since [...]

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