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13.4% Fall In Earnings Value During Recession

Monday, December 30, 2013

London Worst Hit By Recession As Real Value Of Average Earnings For All Employees In UK Drops By 13.8% Since 2008 Official Data Shows

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

The drop in the real value of average earnings of all employees in employment between April 2008 and November 2013 in the UK has been 13.8% 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 £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%.

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 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 5.  Worst was the drop in Hammersmith & Fulham down 49.1%, followed by Camden down 30.7%, then Haringey 26.8%, Greenwich 24.7%, Warrington 24%, Sheffield 23.9%, Windsor & Maidenhead 23.7%, Harrow 23.6%, Buckinghamshire 22.9%, Blackpool 22.6%, Hartlepool 22.3%, Portsmouth 22.2%, Perth and Kinross 22.0%, Bromley 21.6%, Southwark 21.3%, Oldham 21.2%, Richmond upon Thames 21.1%, Scottish Borders 20.9%, Swindon 20.9% and Walsall 20.9%.

The only area to increase is Moray in Scotland at 1%.

The data was published by Office for National Statistics – see notes to editors for sources and definitions. The table in notes to editors below sets out the official data for all 12 regions in the UK. The raw data 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 .

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:

1          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.

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 2013 information related to the pay period which included 17 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/2013-provisional-results/stb-ashe-statistical-bulletin-2013.html#ta
b-background-notes.

5          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

Hertfordshire, Cambridgeshire And Peterborough Worst Hit By Recession As Real Value Of Average Earnings In East Of England Drops By 13.8% Since 2008

download pdf19Kb (pdf) - 30 December 2013

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

Northamptonshire, Leicester And Notre Worst Hit By Recession As Real Value Of Average Earnings In East Midlands Drops By 14.4% Since 2008

download pdf19Kb (pdf) - 30 December 2013

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

Hammersmith & Fulham, Camden And Haringey Worst Hit By Recession As Real Value Of Average Earnings In London Drops By 20.4% Since 2008

download pdf22Kb (pdf) - 30 December 2013

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

Hartlepool, North Tyneside And Middlesbrough Worst Hit By Recession As Real Value Of Average Earnings In North East Drops By 8.6% Since 2008

download pdf20Kb (pdf) - 30 December 2013

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

Warrington, Blackpool And Oldham Worst Hit By Recession As Real Value Of Average Earnings In North West Drops By 13.4% Since 2008

download pdf20Kb (pdf) - 30 December 2013

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

Perth & Kinross, Scottish Borders And Midlothian Worst Hit By Recession As Real Value Of Average Earnings In Scotland Drops By 9.9% Since 2008

download pdf22Kb (pdf) - 30 December 2013

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

Windsor & Maidenhead And Buckinghamshire Worst Hit By Recession As Real Value Of Average Earnings In South East Drops By 14.4% Since 2008

download pdf22Kb (pdf) - 30 December 2013

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

Swindon, North Somerset And Devon Worst Hit By Recession As Real Value Of Average Earnings In South West Drops By 13.7% Since 2008

download pdf34Kb (pdf) - 30 December 2013

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

Bridgend, Pembrokeshire And Swansea Worst Hit By Recession As Real Value Of Average Earnings In Wales Drops By 12.5% Since 2008

download pdf21Kb (pdf) - 30 December 2013

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

Walsall, Solihull And Staffordshire Worst Hit By Recession As Real Value Of Average Earnings In West Midlands Drops By 10.5% Since 2008

download pdf20Kb (pdf) - 30 December 2013

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

Sheffield, Leeds And Doncaster Worst Hit By Recession As Real Value Of Average Earnings In Yorkshire & The Humber Drops By 15.4% Since 2008

download pdf20Kb (pdf) - 30 December 2013

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