Total pay has reached lowest monthly level in two years

By agency reporter
April 19, 2018

Responding to the latest Labour Market statistics, the New Economics Foundation (NEF) has commented on what lies behind the headline figures on wages and inflation.

Alfie Stirling, Head of Economics at the NEF, said, “While it is welcome news to see regular pay slightly higher at the beginning of 2018 in real terms than at the same time in 2017, the bigger picture makes for grim reading.

“Almost 10 years on from the financial crisis, growth in regular wages has stalled dramatically, with earnings growth broadly flat or worse since March 2016. The latest data also shows that when bonuses are included, total pay in February reached the lowest monthly level seen in two years.

“The bottom line is that Britain’s current economic model is broken. A growing economy is failing to translate into higher wages for the majority of people, with average earnings not expected to return to their pre-crisis peak until 2025.”

* New Economics Foundation http://neweconomics.org/

[Ekk/6]

Although the views expressed in this article do not necessarily represent the views of Ekklesia, the article may reflect Ekklesia's values. If you use Ekklesia's news briefings please consider making a donation to sponsor Ekklesia's work here.