When adjusted for inflation, the weekly earnings in the UK increased by 2.9% from April 2023 to April 2024.
The Office for National Statistics has released new figures showing that the median wage for full-time workers is PS728.
All major occupational groups saw an increase in full-time employees. The largest increases were reported by lower paid occupations, such as “caring and recreation” and “sales, customer service, and related occupations”, which both grew 7.7% (unadjusted), compared to the previous year.
The median gross weekly income of “managers, directors and senior officers” increased by 7.6%. The “professional occupations”, with a 5% increase, saw the smallest rise.
In April 2024 the median gross annual income for full-time workers was PS37,430, up 6.9% from PS35,004 (in April 2023).
In April 2024 the median hourly wage for full-time employees, excluding overtime, was PS18.64 per hour (up 6.4% from PS17.52).
The ONS reported that the percentage of low-paid employees jobs dropped to 3.4% from 9.8% in 2023. This is the lowest level since 1997. Meanwhile, the percentage of high-paid employees jobs declined 0.7 points over the course of the year, to 22.7%. Both declines were record lows.
In April 2024, the highest percentage of low-paid positions was in the elementary occupations (12.9%), followed by hospitality (17%). Basic occupations include cleaners and delivery drivers. The young and the women are also more likely to have low-paying jobs.
The TUC used these figures to criticise the previous Conservative governments. It argued that the period between 2010 and 2024, with a real average annual wage increase of only 0.3% was the worst pay growth period since the 1920s.
The Institute for Fiscal Studies says that Britain’s lackluster pay growth in the last 15 years can be attributed to a decline of productivity. In an blog, IFS researcher Nick Ridpath said that productivity had doubled in 35 years prior to 2008 but only increased by 5% in 15 years. He said that the stagnation was referred to as the “productivity puzzle” and had prompted much debate among economists. However, he believed the main cause of the stagnation was a lack of investment.
Ridpath confirmed the UK economy performed the worst among the G7 wealthy democracies compared to the pre-pandemic period. He pointed to Brexit and the Ukraine crisis as contributing factors, but also questioned furloughs. He said that the US’s generous unemployment compensation may have helped the UK economy recover faster from the pandemic.
The post-Covid economic environment had a different set of employment patterns and priorities. Paying businesses to keep employees in their pre Covid jobs was not as productive.
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