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GDP Per Head Still Down 5.7% On 2007

Friday, July 25, 2014

GDP Per Head Still 5.7% Down And Real Value Of Average Earnings 13.8% Down On 2007 Levels As Patchy Recovery Gains Pace Says GMB

In places like Dundee, Nottingham, Birmingham, Newcastle upon Tyne, Liverpool, Leicester, Newham, Walsall, Hartlepool, Manchester and Middlesbrough the employment rate is way below the UK average of 71.6% says GMB.

GMB commented on the figures from ONS which show the UK growth of 0.8% in the second quarter of 2014 taking the size of the economy above its pre-recession peak.

Paul Kenny, GMB General Secretary, said “The six years between the start of the downturn and now is the longest for over a 100 years.

However there is some way to go before GDP per head recovers to pre- recession levels.

This is because much of the growth is due to demographic factors. The increase in population means GDP per head is still 5.7% below 2007 levels. See notes to editors 1 for figures.

So size of the cake is back to pre-recessions levels but the slice per person is smaller.  This is the root cause of average earnings being down 13.8% in real terms since then.

The recovery is patchy. There are large swathes of the country and a great number of workers that have seen little or no benefit from this recovery.

In places like Dundee, Nottingham, Birmingham, Newcastle upon Tyne, Liverpool, Leicester, Newham, Walsall, Hartlepool, Manchester and Middlesbrough the employment rate is way below the UK average of 71.6%. See notes to editors 2 for list of 20 areas with the lowest employment rates. This needs addressing."

End

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

Notes to editors

1 Changes in GDP at current prices and population since 2007

 

Year

GDP seasonally

Population

 

GDP

per head £

Index

% change

 

Adjusted £m

 

 

 

 

2007

1,552,989

61,319,100

25,326

100

 

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

 

2 Twenty areas with lowest  employment rates

 

 

Employment rate April 2013-March 2014

% above or below the UK average

 

 

 

 

1

Dundee City

59.6

-16.8

2

Nottingham

60.3

-15.8

3

Birmingham

60.3

-15.8

4

Newcastle upon Tyne

60.6

-15.4

5

Liverpool

61.2

-14.5

6

Leicester

61.2

-14.5

7

Newham

61.8

-13.7

8

Walsall

62.0

-13.4

9

Hartlepool

62.3

-13.0

10

Manchester

62.3

-13.0

11

Middlesbrough

62.4

-12.8

12

Rochdale

62.5

-12.7

13

Wolverhampton

62.7

-12.4

14

North Ayrshire

62.7

-12.4

15

Blackburn with Darwen

63.0

-12.0

16

Barking and Dagenham

63.2

-11.7

17

Kingston upon Hull, City of

63.3

-11.6

18

Ceredigion

63.6

-11.2

19

Hackney

63.7

-11.0

20

Kensington and Chelsea

63.7

-11.0

 

 

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