Stalling wage growth since 2008 costs £11,000 a year, says think tank

[onthedarkside]

 

Fifteen years of wage stagnation has left British workers £11,000 worse off a year, according to research shared exclusively with BBC Panorama.

 

The Resolution Foundation, which focuses on low-to-middle income families, examined what wages might be today if growth seen before the 2008 financial crisis had not fallen away.

 

It also found typical UK household incomes have fallen further behind those in Germany. In 2008, the gap was over £500 a year, now it is £4,000.

 

https://www.bbc.com/news/business-64970708

 

[Fat is a type of crazy]

Same in Australia. Economy too weak. No wage increase. Economy too strong causing inflation. Limit wage increases to curb inflation. The worker cops it both ways. 

[Chomper Higgot]

No surprises there.

 

 

[Chomper Higgot]

5 minutes ago, Fat is a type of crazy said:

Same in Australia. Economy too weak. No wage increase. Economy too strong causing inflation. Limit wage increases to curb inflation. The worker cops it both ways. 

The UK economy suffers from both low productivity and anemic growth.

 

Inflation is being driven by supply side restrictions, not wage increases, while Government policy has been to restrict wage increases in the public sector while handing tax breaks to the already wealthy.

 

The consequence is income disparity continues to rise.

 

A nation of haves and have nots.

[stratocaster]

There has been a lot of chatter on this forum regarding the million job vacancies in the UK. I just read an article that there are 6,000 vacancies at Heathrow. I found a job agent that lists 1200 of those jobs. There are basically no jobs paying over 21,000 per year or 10.80 per hour. Harrods and Gucci shops pay their shop assistants 10.80 pounds per hour. Remember this is to live in London. Supermarket "managment" assistants are 11 pounds per hour outside London. 12 pounds inside.

 

The job that surprised me was the building site carpenter at 15 pounds per hour. I checked with a German job agency, first building site carpenter job I found pays 30 Euros per hour plus housing allowance plus travel benefits.

[youreavinalaff]

Let's give everyone an £11000 a year payrise.

 

All those in retail, in the service industry, civil servants too. Everyone that works.

 

Businesses and government agencies, etc will then need to pass the costs on to the public.

 

Then let's watch cost of living increase by factors in the 10+. Income tax rises. Train tickets, bus tickets, airline tickets, food, fuel, energy, clothes. Then everyone can work out how much better off they are. Likely, nothing.

[Chomper Higgot]

On 3/29/2023 at 2:09 PM, youreavinalaff said:

Let's give everyone an £11000 a year payrise.

 

All those in retail, in the service industry, civil servants too. Everyone that works.

 

Businesses and government agencies, etc will then need to pass the costs on to the public.

 

Then let's watch cost of living increase by factors in the 10+. Income tax rises. Train tickets, bus tickets, airline tickets, food, fuel, energy, clothes. Then everyone can work out how much better off they are. Likely, nothing.

You seem to have missed the bit about stalling wages already costing these self same people £11,000 per year.

 

Nah, let everyone’s wages fall behind so long as your own costs do go up.

 

[youreavinalaff]

2 hours ago, Chomper Higgot said:

You seem to have missed the bit about stalling wages already costing these self same people £11,000 per year.

 

Nah, let everyone’s wages fall behind so long as your own costs do go up.

 

You seem to forget inflation has only been an issue for under a year.

 

Prior to Covid most people were sitting pretty. Hardly anyone was complaining about inflation, interest rates or the cost of living. In fact, during lockdowns many people were over the moon to be sitting at home on 80% of their salary tax free.

 

If, in a moment of madness, any government were to suddenly give everyone an £11000 a year payrise, prices would soar. Within months no one would be any better off.

 

 

[Chomper Higgot]

36 minutes ago, youreavinalaff said:

You seem to forget inflation has only been an issue for under a year.

 

Prior to Covid most people were sitting pretty. Hardly anyone was complaining about inflation, interest rates or the cost of living. In fact, during lockdowns many people were over the moon to be sitting at home on 80% of their salary tax free.

 

If, in a moment of madness, any government were to suddenly give everyone an £11000 a year payrise, prices would soar. Within months no one would be any better off.

 

 

 

“If, in a moment of madness, any government were to suddenly give everyone an £11000 a year payrise, prices would soar. Within months no one would be any better off.”

 

This ‘moment of madness’, that was your idea wasn’t it?

 

On 3/29/2023 at 2:09 PM, youreavinalaff said:

Let's give everyone an £11000 a year payrise.

 

Oh, so it was. 

[youreavinalaff]

2 minutes ago, Chomper Higgot said:

 

“If, in a moment of madness, any government were to suddenly give everyone an £11000 a year payrise, prices would soar. Within months no one would be any better off.”

 

This ‘moment of madness’, that was your idea wasn’t it?

 

Oh, so it was. 

No. It was a scenario.

 

The problem with reports talking about salary is they don't discuss other measures. People change their opinions to suit.

 

Recent strikes have been because people want pay rises in line with inflation.

 

In the past 15 years inflation has only been above 4% in 3 of those years.

 

For many workers to be £11000 better off that would have equated to annual salary increases in excess of 7% above what they already received. Oh look, salaries not linked to inflation. Oh, we can't have that, can we?

[Chomper Higgot]

Just now, youreavinalaff said:

No. It was a scenario.

 

The problem with reports talking about salary is they don't discuss other measures. People change their opinions to suit.

 

Recent strikes have been because people want pay rises in line with inflation.

 

In the past 15 years inflation has only been above 4% in 3 of those years.

 

For many workers to be £11000 better off that would have equated to annual salary increases in excess of 7% above what they already received. Oh look, salaries not linked to inflation. Oh, we can't have that, can we?

You dreamed up your ‘scenario’ and then declared it madness.

 

What can I say?!

[youreavinalaff]

7 minutes ago, Chomper Higgot said:

You dreamed up your ‘scenario’ and then declared it madness.

 

What can I say?!

I was not I who suggested that the public are £11000 worse off because of salaries without taking other issues into consideration.

 

 

[Chomper Higgot]

2 minutes ago, youreavinalaff said:

I was not I who suggested that the public are £11000 worse off because of salaries without taking other issues into consideration.

 

 

Except you said this:

 

On 3/29/2023 at 2:09 PM, youreavinalaff said:

Let's give everyone an £11000 a year payrise.

And then said this:

 

59 minutes ago, youreavinalaff said:

If, in a moment of madness, any government were to suddenly give everyone an £11000 a year payrise, prices would soar. Within months no one would be any better off.

 

 

Arguing against your own ‘scenario’, calling it madness even.

Keep us posted on which of the two wins out.