Real Wage Decline

Real Wage Decline

Official figures have shown that real wages have been declining consistently since 2010. This is the longest period of falls since 1964.

The measure of real wages is things such as inflation or the cost of living being taken into account. The Office for National Statistics (ONS) said that real wages had dropped 2.2% annually since 2010 and was being linked to longer working hours and reduced output.

The cost of living and wages have been discussed politically for some time now. During the financial crisis when the period of falls began it was found that employers who wanted to avoid making staff redundant asked if they were willing to work shorter hours.

Wage growth was most active during the 1970’s and 80’s, however inflation rates were high and variable. Since then although they have fluctuated less and have been on a downward spiral.