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Average Pay Down 13.6%

Wednesday, December 30, 2015

Pay In London Hardest Hit As Real Value Of Average Earnings For Full Time Workers In UK Drop By 13.6% Since 2008

The government predicts that the economy will grow steadily each year to 2020 and workers in the UK will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB.

There has been a 13.6% drop in the real value of average earnings of full time workers in employment in UK between April 2008 and April 2015 a new GMB study of official earnings data shows.

In April 2008 the mean gross annual earnings for all employees in employment in the UK according to the Annual Survey of Hours and Earnings (ASHE) was £31,494. The ASHE figure for the mean gross annual earnings for all employees in employment in the UK for April 2015 was £33,689. This is an increase of £2,195 or just 7%. Between April 2008 and April 2015 inflation has been 20.6%. This means the drop in real value of earnings between April 2008 and April 2015 has been 13.6% for the UK.

The drop in the real value of average earnings between April 2008 and April 2015 for full time employees in employment resident in London has been 23.2%. This is the largest drop for all 12 regions in the UK. The next largest drop is the South East with a drop of 16%, East Midlands 15.7%, Yorkshire and The Humber 14.9%, North West 12.4%, West Midlands 11.8%, East 11.5%, Wales 11.3%, South West 10.6%, Scotland 6.7%, North East 5.0% and Northern Ireland 4.9%. The details are set out in the table below for the UK and all 12 regions.

The 20 areas with the steepest decline are: Hammersmith and Fulham 52.6%, Islington 35.1%, Camden 29.3%, Southwark 28.3%, Ealing 26.6%, Surrey 26.0%, Bedford UA 25.6%, West Berkshire UA 24.2%, Warrington UA 23.5%, Greenwich 23.4%, Tower Hamlets 22.6%, York UA 22.3%, Denbighshire 22.1%, Buckinghamshire 21.8%, Blackburn with Darwen UA 21.4%, Sheffield 21.0%, Sutton 21.0%, Bromley 20.1%, Stirling 20.1% and Salford 19.8%. The full details for each of these 20 worst affected areas in the UK for the drop in average earnings for full time workers resident in the areas are set out in Notes to Editors 5.

The data, published by Office for National Statistics, was analysed and ranked by GMB. See notes to editors for sources and definitions. The raw data for 200 areas in the UK for 2015 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/Newsroom .

MEAN GROSS ANNUAL EARNINGS OF FULL TIME WORKERS IN £s FOR RESIDENTS IN UK & REGIONS 2008 TO 2015

Rank

 

2008

2015

change

% change

Drop in real value of earnings between

April 2008 and April 2015*

 

United Kingdom

31,494

33,689

2,195

7.0

-13.6

1

London

44,314

43,154

-1,160

-2.6

-23.2

2

South East

36,326

37,999

1,673

4.6

-16.0

3

East Midlands

29,069

30,480

1,411

4.9

-15.7

4

Yorkshire and The Humber

27,954

29,548

1,594

5.7

-14.9

5

North West

28,068

30,366

2,298

8.2

-12.4

6

West Midlands

27,803

30,239

2,436

8.8

-11.8

7

East

33,305

36,325

3,020

9.1

-11.5

8

Wales

26,330

28,774

2,444

9.3

-11.3

9

South West

28,481

31,332

2,851

10.0

-10.6

10

Scotland

28,528

32,472

3,944

13.8

-6.7

11

North East

25,765

29,766

4,001

15.5

-5.0

12

Northern Ireland

25,496

29,502

4,006

15.7

-4.9

Paul Kenny GMB General Secretary said “While we have seen a growth in the number of workers as the population has grown average pay has simply not kept pace with inflation.

Since 2008 the cumulative inflation has been 20.6%. During this period pay in the UK has gone up by 7% which has left the pay of the average full time worker in the region down by 13.6% in real terms.

This has had a deflationary impact on the economy and has also impacted on the tax take by the Chancellor to pay for essential public services.

In the autumn statement the Chancellor predicted that the economy would grow steadily each year to 2020 when it would be 12% bigger than now. Workers in the UK will want to see that growth translating into pay rises above inflation to make up the lost ground.”

End

Contact: Kamaljeet Jandu, GMB National Equality & 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 GMB press Office 07921 289880 or 07974 251823.

Notes to editors:


1              Source: 2008-2015 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.
 

2              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 2015 information related                   to the pay period which included 09 April.
 

3              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.

4              Further details are available here: http://www.ons.gov.uk/ons/rel/ashe/annual-survey-of-hours-and- earnings/2015-provisional-results/stb-ashe-statistical-bulletin-2015.html#ta
                b-background-notes.

5              THE 20 AREAS IN THE UK WHERE AVERAGE EARNINGS HAVE DROPPED MOST BETWEEN 2008 AND 2015

   

2008

2015

£ change

% change

% Drop in real value of earnings between April 2008 and April 2015*

1

Hammersmith and Fulham

75,931

51,602

£-24,329

-32.0%

-52.6%

2

Islington

57,808

49,416

£-8,392

-14.5%

-35.1%

3

Camden

60,447

55,185

£-5,262

-8.7%

-29.3%

4

Southwark

46,204

42,612

£-3,592

-7.8%

-28.3%

5

Ealing

40,185

37,744

£-2,441

-6.1%

-26.6%

6

Surrey

47,589

44,979

£-2,610

-5.5%

-26.0%

7

Bedford UA

35,146

33,388

£-1,758

-5.0%

-25.6%

8

West Berkshire UA

40,247

38,784

£-1,463

-3.6%

-24.2%

9

Warrington UA

33,282

32,305

£-977

-2.9%

-23.5%

10

Greenwich

44,201

42,953

£-1,248

-2.8%

-23.4%

11

Tower Hamlets

48,125

47,127

£-998

-2.1%

-22.6%

12

York UA

31,137

30,594

£-543

-1.7%

-22.3%

13

Denbighshire

24,846

24,472

£-374

-1.5%

-22.1%

14

Buckinghamshire

45,128

44,568

£-560

-1.2%

-21.8%

15

Blackburn with Darwen UA

24,870

24,652

£-218

-0.9%

-21.4%

16

Sheffield

29,090

28,954

£-136

-0.5%

-21.0%

17

Sutton

36,971

36,827

£-144

-0.4%

-21.0%

18

Bromley

50,245

50,486

£241

0.5%

-20.1%

19

Stirling

39,767

39,964

£197

0.5%

-20.1%

20

Salford

26,643

26,841

£198

0.7%

-19.8%

 

 

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Additional Resources

Pay In Bedford, Cambridgeshire & Hertfordshire Hardest Hit As Real Value Of Average Earnings In East Of England Drop By 11.5% Since 2008

download pdf99Kb (pdf) - 30 December 2015

The real value of average earnings of all full time employees resident in East of England has dropped by 11.5% between April 2008 and April 2015 a new GMB study of official earnings data shows says GMB.

Pay In Northampton, Derbyshire & Leicestershire Hardest Hit As Real Value Of Average Earnings In East Midlands Drop By 15.7% Since 2008

download pdf21Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the East Midlands will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Hammersmith, Islington, Camden & Southwark Hardest Hit As Real Value Of Average Earnings In London Drop By 23.2% Since 2008

download pdf23Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in London will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Hartlepool & Middlesbrough Hardest Hit As Real Value Of Average Earnings In North East Drop By 5% Since 2008

download pdf21Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the North East will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Warrington, Blackburn, Salford & Bolton Hardest Hit As Real Value Of Average Earnings In North West Drop By 12.4% Since 2008

download pdf23Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the North West will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Stirling, South Ayrshire And North Ayrshire Hardest Hit As Real Value Of Full Time Average Earnings In Scotland Drop By 6.7% Since 2008

download pdf22Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in Wales will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Surrey, West Berkshire & Buckinghamshire Hardest Hit As Real Value Of Average Earnings In South East Drop By 16% Since 2008

download pdf22Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the South East will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Devon, North Somerset & Swindon Hardest Hit As Real Value Of Average Earnings In South West Drop By 10.6% Since 2008

download pdf22Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the South West will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Denbighshire, Pembrokeshire, Gwynedd And Bridgend Hardest Hit As Real Value Of Full Time Average Earnings In Wales Drop By 11.3% Since 2008

download pdf22Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in Wales will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Solihull, Staffordshire & Herefordshire Hardest Hit As Real Value Of Average Earnings In West Midlands Drop By 11.8% Since 2008

download pdf21Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the West Midlands will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In York, Sheffield, Wakefield & Doncaster Hardest Hit As Real Value Of Average Earnings In Yorkshire & The Humber Drop By 14.9% Since 2008

download pdf21Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the Yorkshire & The Humber will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Pay In Northern Ireland Hit As Real Value Of Average Earnings For Full Time Workers Drop By 4.9% Since 2008

download pdf182Kb (pdf) - 30 December 2015

The government predicts that the economy will grow steadily each year to 2020 and workers in the UK will want to see that growth translating into pay rises above inflation to make up the lost ground says GMB

Full Table Of Figures

download xlsx74Kb (xlsx) - 30 December 2015

2008-2015 Annual Survey of Hours and Earnings - residence based Full-time employee jobs