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Average Earnings Drop 12.8%

Wednesday, January 9, 2013

Real value of average earnings for all employees in UK have dropped by 12.8% since 2008 official data shows.

If negotiated settlements in public sector are not offered in coming pay round strike ballots are inevitable as hard press families need pay rises to cope with bills going through the roof says GMB.

The drop in the real value of average earnings of all employees in employment between April 2008 and November 2012 in the UK has been 12.8% a new GMB study of official earnings data shows.

In April 2008 the mean gross annual earnings for all employees in employment according to the Annual Survey of Hours and Earnings (ASHE) was £26,137. The ASHE figure for the mean gross annual earnings for all employees in employment for April 2012 was £26,664. This is an increase of £527 or just 2%. Between April 2008 and November 2012 inflation has been 14.8%. This means drop in real value of earnings between April 2008 and November 2012 has been 12.8% for the UK.

The drop in the real value of average earnings between April 2008 and November 2012 for all employees in employment resident in London has been 17.4% - the largest drop of all 12 regions in the UK. Next is Yorkshire and The Humber with a drop of -13.3 %, followed by North West -13.1%, East Midlands -12.8%, East -12.6%, Wales -12.4% , Northern Ireland -12.1%, West Midlands -12.0%, South West -11.7%, South East -10.8%, Scotland -9.5% and North East -7.9%.

The table below sets out the official data for mean gross annual earnings for UK, GB, England and all 12 regions in the UK for all employees in employment resident in the areas ranked by GMB by largest to smallest drop in the real value of earnings between April 2008 and November 2012 by region. The data was published by Office for National Statistics – see notes to editors for sources.

    Mean gross annual (£) - all employees  
    2008 2012 change % change drop in real value of earnings between April 2008 and November 2012
             
  United Kingdom 26,137 26,664 527 2.0 -12.8
  Great Britain 26,351 26,865 514 2.0 -12.8
  England 26,864 27,302 438 1.6 -13.1
             
rank            
1 London 37,759 36,763 -996 -2.6 -17.4
2 Yorkshire and The Humber 23,227 23,558 331 1.4 -13.3
3 North West 23,522 23,913 391 1.7 -13.1
4 East Midlands 24,128 24,605 477 2.0 -12.8
5 East 27,385 27,980 595 2.2 -12.6
6 Wales 21,944 22,472 528 2.4 -12.4
7 Northern Ireland 21,333 21,902 569 2.7 -12.1
8 West Midlands 23,035 23,670 635 2.8 -12.0
9 South West 23,406 24,120 714 3.1 -11.7
10 South East 29,944 31,134 1,190 4.0 -10.8
11 Scotland 23,934 25,184 1,250 5.2 -9.5
12 North East 21,463 22,938 1,475 6.9 -7.9
             

Paul Kenny GMB General Secretary said “These figures showing a drop of 12.8 % in the real value of earning explain why we are on our way to a triple dip recession.

Consumer spending is the single biggest component of demand in the economy and with the real value of wages from employment falling there is no mystery as to why the economy is in a downward spiral. The replacing of full time permanent jobs with part time and temporary lower paid jobs is part of this.

An example of this are GMB members employed by Prospect Housing a private care company in Surrey who were notified that they have a choice of accepting a pay cut of up 40% - £8,500 per year for one member for example - or being replaced by agency staff on lower pay. Another example is the last ditch talks today to avert industrial action over hours are being cut for GMB employed by Sedexo at Brighton Hospital to save money.

GMB is seeking negotiated settlement in the forthcoming pay round in the public sector. If such settlements are not on offer GMB has already said that ballots for strike action will be inevitable. Such settlements are badly needed to boost the economy and stop the downward spiral. Pay rises are needed to help hard press families cope with bills going through the roof.”

End

Contact: Paul Maloney 07801 343 839 or Kamaljeet Jandu 07956 237 178 or GMB Press Office 07921 289 880 or 07974 251 823

Full table of figures

Related release for the East Midlands

Related release for London

Related release for the North East

Related release for the North West

Related release for Scotland

Related release for the South East

Related release for the South West

Related release for Wales

Related release for the West Midlands

Related release for Yorkshire & The Humber

Notes to editors

2008-2012 Annual Survey of Hours and Earnings - residence based.

Source: Annual Survey of Hours and Earnings, Office for National Statistics. Crown Copyright Reserved.

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