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GDP Per Head Still 5.7% Below 2007

Tuesday, April 29, 2014

New GDP Per Head Data Shows There Is A Very Long Way To Go To Climb Out Of The Hole Caused By The Recession Says GMB

GDP per head is still 5.7% below 2007 levels which is the root cause of average earnings being down 13.8% in real terms since then says GMB. 

GMB commented on Gross Domestic Product: Preliminary Estimate - Q1 2014 released today 29th April.

Paul Kenny, GMB General Secretary, said “Onwards and upwards” will be the response of politicians and commentators to the latest GDP figures. Meanwhile back in the real world people know that while the recovery underway is welcome we have a very long way to go to climb out of the hole caused by the recession.

Much of the growth is due to demographic factors and the increase in population means GDP per head is still 5.7% below 2007 levels. See notes to editors for figures

This is the root cause of average earnings being down 13.8% in real terms since then.

The share of income from labour in the UK going to the top 1% of earners has nearly doubled from 7% in 1970 to 13% in 2011.

Before the recession the top 1% of earners were raking in over 15% of all pay. There is nothing to stop the top 1% getting the lions share again. See notes to editors for figures

The pay of the bottom 50% of the workforce is still being squeezed. Public sector workers pay is being frozen or increasing less than inflation.”

End

Contact: Kamaljeet Jandu 07956 237178 or Rehana Azam 07841 181656 or Martin Smith 07974 251 722 or Mick Rix 07971 268343 GMB press office 07921 289880

Notes to editors

1 Changes in GDP at current prices and population since 2007

 

Gross Domestic Product: chained volume measures: Seasonally adjusted £m

population

GDP per capita per year £ 

index

 

2007

1,552,989

61,319,100

25,326

100

% change

2008

1,541,039

61,823,800

24,926

98.4

-1.6

2009

1,461,361

62,260,500

23,472

92.7

-7.3

2010

1,485,616

62,759,500

23,672

93.5

-6.5

2011

1,502,216

63,285,100

23,737

93.7

-6.3

2012

1,505,993

63,705,000

23,640

93.3

-6.7

2013

1,532,431

64,135,000

23,894

94.3

-5.7

 

 

Source: United Kingdom National Accounts, The Blue Book, Office for National Statistics Source:

Population data, Midyear population estimates, National Population projections - Office for National Statistics

2 top 1% UK share of labour income from 1970 to 2011- source World Top Incomes Database.

Source http://topincomes.parisschoolofeconomics.eu

Year

Top 1% income share-married couples

& single adults

Top 1% income share-adults

1970

7.05%

 

1971

7.02

 

1972

6.94

 

1973

6.99

 

1974

6.54

 

1975

6.10

 

1976

5.89

 

1977

5.93

 

1978

5.72

 

1979

5.93

 

1981

6.67

 

1982

6.85

 

1983

6.83

 

1984

7.16

 

1985

7.40

 

1986

7.55

 

1987

7.78

 

1988

8.63

 

1989

8.67

 

1990

 

9.80

1991

 

10.32

1992

 

9.86

1993

 

10.36

1994

 

10.60

1995

 

10.75

1996

 

11.90

1997

 

12.07

1998

 

12.53

1999

 

12.51

2000

 

12.67

2001

 

12.71

2002

 

12.27

2003

 

12.12

2004

 

12.89

2005

 

14.25

2006

 

14.82

2007

 

15.44

2009

 

15.42

2010

 

12.55

2011

 

12.93%

 

 

 

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