Wages in Britain have fallen by more in real terms during the current economic downturn than ever.
Wages in Britain have fallen by more in real terms during the current economic downturn than ever previously recorded, a new report shows.
According to an analysis by the Institute for Fiscal Studies (IFS), one third of workers who stayed in the same job suffered a wage cut or freeze between 2010 and 2011.
The economic thinktank also said British workers have suffered Å“unprecedented” pay cuts of 6 percent in real term wages in the last five years.
Real wages in Britain increase by about 2 percent a year. This suggests that Britons are 15 percent worse off than they would have been if the pre-recession wage trends had continued.
“This period has seen the biggest squeeze of real pay in decades,” said Michael Pearce, at Capital Economics.
“We’re not expecting this damage [to households’ real pay] to be reversed any time soon, highlighting one reason not to get too carried away by recent signs of economic recovery.”
Earlier in May, the UK’s largest unions body the Trades Unions Congress (TUC) warned British workers have seen the value of their real wages drop by 8.5 percent over the last three years.
According to the TUC, average salaries in March 2013 were £2,234 down compared to 2010 level, putting more pressure on family budgets in the country.
MOS/SSM/HE
This article originally appeared on: Press TV