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Pay has shrunk by 10% in parts of UK, TUC study finds Pay has shrunk by 10% in parts of UK, TUC study finds
(about 4 hours later)
Total pay in some parts of the UK has shrunk by more than 10% since the start of the downturn in 2007, analysis by a union organisation suggests.Total pay in some parts of the UK has shrunk by more than 10% since the start of the downturn in 2007, analysis by a union organisation suggests.
The TUC said north-west and south-west England had seen the sharpest cuts - 10.6% and 10.1% respectively.The TUC said north-west and south-west England had seen the sharpest cuts - 10.6% and 10.1% respectively.
It blamed wages failing to keep pace with inflation, reduced hours and changes in employment, such as more part-time working.It blamed wages failing to keep pace with inflation, reduced hours and changes in employment, such as more part-time working.
The TUC said it was making fair pay one of its main campaign issues.The TUC said it was making fair pay one of its main campaign issues.
Its analysis of official figures suggested that on the eve of the recession, workers across the UK were earning a total of £690bn.Its analysis of official figures suggested that on the eve of the recession, workers across the UK were earning a total of £690bn.
Last year the overall pay packet was £638bn - £52bn (7.5%) lower.Last year the overall pay packet was £638bn - £52bn (7.5%) lower.
The North West saw the sharpest cut in its overall pay packet between 2007 and 2012 - a fall of 10.6% or £7bn last year. The West Midlands and Scotland saw cuts of 9.7%, it said.The North West saw the sharpest cut in its overall pay packet between 2007 and 2012 - a fall of 10.6% or £7bn last year. The West Midlands and Scotland saw cuts of 9.7%, it said.
Wales saw a reduction of 8.1%, Northern Ireland 4.8% and London 3.9%, the smallest cut.Wales saw a reduction of 8.1%, Northern Ireland 4.8% and London 3.9%, the smallest cut.
The TUC analysed figures from the Office for National Statistics' annual survey of hours and earnings and its labour force survey.The TUC analysed figures from the Office for National Statistics' annual survey of hours and earnings and its labour force survey.
'Massive hit''Massive hit'
A modest increase in employment had failed to offset a "sharp" cut in wages in recent years, said the TUC.A modest increase in employment had failed to offset a "sharp" cut in wages in recent years, said the TUC.
General secretary Frances O'Grady said: "Over the last five years, people have taken a massive hit in their pay packets, while millions more have had to reduce their hours or take lower paid work. Many people have lost their jobs altogether."General secretary Frances O'Grady said: "Over the last five years, people have taken a massive hit in their pay packets, while millions more have had to reduce their hours or take lower paid work. Many people have lost their jobs altogether."
He said that shrinking wages were hitting living standards, holding back businesses and damaging growth prospects. She said that shrinking wages were hitting living standards, holding back businesses and damaging growth prospects.
"While economic growth is the key challenge facing the UK today, the years running up to the crash taught us that growth without wage gains just creates more unsustainable debt," he said. "While economic growth is the key challenge facing the UK today, the years running up to the crash taught us that growth without wage gains just creates more unsustainable debt," she said.
"Employers and both local and central governments need to recognise the importance of decent wages in delivering sustainable economic growth. They can start by becoming living wage employers and being more transparent about their pay systems.""Employers and both local and central governments need to recognise the importance of decent wages in delivering sustainable economic growth. They can start by becoming living wage employers and being more transparent about their pay systems."
The TUC study coincides with its new pay campaign, Britain Needs A Pay Rise.The TUC study coincides with its new pay campaign, Britain Needs A Pay Rise.