13.4% Fall In Earnings Value During Recession

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