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2013 GDP Per Head Still 5.7% Down

Wednesday, March 5, 2014

13.8% Fall In Real Value Of Average Earnings During Recession Caused By Drop In Uk Gdp Per Head With 2013 Still 5.7% Below 2007 Official Data Shows

People are struggling to pay their bills after years of wage decline and attacks on the living standards and they deserve and need a decent pay rise to halt the drop in living standards says GMB.

GDP per capita in 2013 at £23,894 was 5.7% below the 2007 figure of £25,326.This fall in GDP per head is the root cause of the 13.8% drop in the real value of average earnings of all employees in employment between April 2008 and November 2013 in the UK.

These figures are from a new analysis by GMB of official data for GDP and average earnings since the start of the recession.

The figures for changes in GDP per capita in the UK are set out in Table 1 below. The figures are expressed at 2013 prices to adjust for inflation. In Table 2 are set out mean gross annual earnings in £s for residents in UK and regions between 2008 to 2013.

Table 1 CHANGE IN UK GDP PER CAPITA SINCE 2007

 

Gross Domestic Product:  Seasonally adjusted £m

GDP per capita

Index 2007=100

%change on 2007

2007

1,552,989

25,326

100

 

2008

1,541,039

24,926

98.4

-1.6

2009

1,461,361

23,472

92.7

-7.3

2010

1,485,616

23,672

93.5

-6.5

2011

1,502,216

23,737

93.7

- 6.3

2012

1,505,993

23,640

93.3

-6.7

2013

1,532,431

23,894

94.3

-5.7

According to the Annual Survey of Hours and Earnings (ASHE) in April 2008 the mean gross annual earnings for all employees in employment in the UK was £26,137. The ASHE figure for the mean gross annual earnings for all employees in employment in the UK for April 2013 was £27,174. This is an increase of £1,037 or just 4%. Between April 2008 and November 2013 inflation has been 17.8%. This means the drop in real value of earnings between April 2008 and November 2013 has been 13.8% for the UK.

The drop in the real value of average earnings between April 2008 and November 2013 for all employees in employment resident in London has been 20.4% the largest drop of all 12 regions in the UK. Next is Yorkshire and The Humber with a drop of 15.4 %, followed by South East and the East Midlands 14.4%, East of England 13.8%, South West 13.7%, North West 13.4%, Wales 12.5%, Northern Ireland 12%, West Midlands 10.5%, Scotland 9.9% and North East 8.6%.

Table 2 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 2013.

The full details for the 20 worst affected areas in the UK for the drop in average earnings are set out in Notes to Editors 6. 

The GDP and earning data was published by Office for National Statistics – see notes to editors for sources and definitions. The raw data for earnings for 200 areas in the UK plus the GMB regional press releases are set out as pdfs at the foot of the national release at GMB website www.gmb.org.uk .

Table 2 MEAN GROSS ANNUAL EARNINGS IN £s FOR RESIDENTS IN UK & REGIONS 2008 TO 2013

   

Mean gross annual (£) - all employees

     
   

2008

2013

£ Change

% Change

% Drop in real value of earnings between April 2008 & November 2013*

 

United Kingdom

26,137

27,174

1,037

4.0

-13.8

 

Great Britain

26,351

27,332

981

3.7

-14.1

 

England

26,864

27,737

873

3.2

-14.6

Rank

           

1

London

37,759

36,781

-978

-2.6

-20.4

2

Yorkshire & The Humber

23,227

23,790

563

2.4

-15.4

3

South East

29,944

30,958

1,014

3.4

-14.4

4

East Midlands

24,128

24,949

821

3.4

-14.4

5

East of England

27,385

28,477

1,092

4.0

-13.8

6

South West

23,406

24,375

969

4.1

-13.7

7

North West

23,522

24,561

1,039

4.4

-13.4

8

Wales

21,944

23,110

1,166

5.3

-12.5

9

Northern Ireland

21,333

22,563

1,230

5.8

-12.0

10

West Midlands

23,035

24,725

1,690

7.3

-10.5

11

Scotland

23,934

25,830

1,896

7.9

-9.9

12

North East

21,463

23,435

1,972

9.2

-8.6

*inflation rate between April 2008 and November 2013 is 17.8%

Paul Kenny GMB General Secretary said “These alarming figures show how hard pressed working people across the UK are struggling to pay their bills after years of wage decline and attacks on the living standards of families throughout the land.

Working people deserve and need a decent pay rise to halt the drop in living standards.

End

Contact: Kamaljeet Jandu, GMB National Equality and Diversity Officer on 07956 237178 or Brian Strutton, GMB National Secretary on 07860 606137 or Gary Doolan, GMB National Political Officer on 07852 182358 or Martin Smith, GMB National Organiser on 07974 251722 or GMB Press Office 07921 289880 or 07974 251823.

Notes to editors:

1Source: GDP 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          Source: 2008-2013 Annual Survey of Hours and Earnings - residence based for all employee jobs. Source: Table 8.7a, Annual Survey of Hours and Earnings, Office for National Statistics. Crown Copyright Reserved.

3          The Annual Survey of Hours and Earnings (ASHE) is based on a 1% random sample of employee jobs (approximately 181,000 employees) taken from HM Revenue and Customs PAYE records. Information on earnings and hours is obtained from employers and treated confidentially. It covers all employee jobs in all industries and occupations across the whole of the United Kingdom. In 2013 information related to the pay period which included 17 April.

4          ASHE analyses for annual earnings relate to employees on adult rates of pay who have been in the same job for more than one year. ASHE does not cover the self-employed or the armed forces nor does it cover employees not paid during the reference period.

5          Further details are available here: http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and- earnings/2013-provisional-results/stb-ashe-statistical-bulletin-2013.html#ta
b-background-notes.

6          THE 20 AREAS IN THE UK WHERE AVERAGE EARNINGS HAVE DROPPED MOST BETWEEN 2008 AND 2013

 

   

Mean gross annual (£) - all employees

     
   

2008 £

2013 £

£ Change

% Change

% Drop in real value of earnings between April 2008 and November 2013*

1

Hammersmith & Fulham

65,452

44,963

-20,489

-31.3

-49.1

2

Camden

52,570

45,807

-6,763

-12.9

-30.7

3

Haringey

33,164

30,189

-2,975

-9.0

-26.8

4

Greenwich

37,871

35,242

-2,629

-6.9

-24.7

5

Warrington

28,366

26,607

-1,759

-6.2

-24.0

6

Sheffield

24,075

22,605

-1,470

-6.1

-23.9

7

Windsor & Maidenhead

42,436

39,932

-2,504

-5.9

-23.7

8

Harrow

31,888

30,026

-1,862

-5.8

-23.6

9

Buckinghamshire

37,118

35,228

-1,890

-5.1

-22.9

10

Blackpool

18,541

17,647

-894

-4.8

-22.6

11

Hartlepool

24,416

23,307

-1,109

-4.5

-22.3

12

Portsmouth

22,850

21,840

-1,010

-4.4

-22.2

13

Perth & Kinross

25,327

24,257

-1,070

-4.2

-22.0

14

Bromley

42,757

41,131

-1,626

-3.8

-21.6

15

Southwark

39,121

37,767

-1,354

-3.5

-21.3

16

Oldham

22,291

21,531

-760

-3.4

-21.2

17

Richmond upon Thames

48,016

46,456

-1,560

-3.2

-21.1

18

Scottish Borders

24,158

23,413

-745

-3.1

-20.9

19

Swindon

26,100

25,297

-803

-3.1

-20.9

20

Walsall

21,774

21,110

-664

-3.0

-20.9

 

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Additional Resources

2008-2013 Annual Survey of Hours and Earnings - residence based

download pdf143Kb (pdf) - 05 March 2014

Full table of figures