United Kingdom: average wages return to pre-financial crisis levels

Almost 12 years on from the financial crisis of 2008, which heralded a deep recession and a rise in unemployment, wages in the UK have risen back to the level they were before the crash, the UK Office for National Statistics revealed on 18 February. Average weekly earnings, excluding bonuses, rose by 1.8% in the 12 months to December 2019 in real terms – with inflation taken into consideration – to reach £474 (€570.56), around £1 (€1.20) higher than in March 2008. Frances O’Grady, General Secretary of the Trades Union Congress, said: “Today’s wages figures are nothing to celebrate after a decade of terrible wage growth. Families are experiencing record levels of in-work poverty, and record levels of debt.” It should be highlighted that against an uncertain economic backdrop and amid the UK’s exit from the EU, the growth of UK wages slowed in December to 2.9%, compared to 3.2% in November, when bonus pay is considered. Meanwhile, the labour market statistics also reveal that the number of zero-hour contracts, which offer no salary or working time guarantees, reached a record of 974,000 last year, accounting for 3% of the active population. This increase – compared to the 896,000 zero-hour contracts recorded in August – has been condemned by the TUC.