Too many workers haven’t had a pay rise
More evidence has emerged about pay stagnation in the UK. Yesterday I noted that the Annual Survey of Hours and Earnings showed that house prices had been going up twice as fast as earnings since the recession. Today I read an interesting presentation on the ASHE figures by Philip Wales, the head of Economic Analysis at the Office for National Statistics.
Although the latest figures show median gross annual income for full-time employees rising 1.8 per cent from 2014, Dr Wales’ presentation revealed that 7.5 per cent of employees experienced zero per cent nominal earnings growth.
Now, you may be thinking to yourself “surely there’s always some people in that position” – and you’d be right. But the presentation also shows that the percentage of workers getting less in cash terms in the current year than they did the previous year shot up during the recession and hasn’t yet come down to pre-recession levels:
Yes, wages are finally going up for most people, but pay stagnation is still having an effect.