Wages Fall For First Time In Five Years

Written By Unknown on Rabu, 13 Agustus 2014 | 16.01

British workers earned less between April and June than they did in the same period last year, deepening the cost of living squeeze.

The Office for National Statistics (ONS) charted average weekly earnings, including bonuses, fell by a yearly 0.2% over the three months.

That's the first time wage growth has been negative since the recession of 2009.

When the effects of bonus payments were stripped out, pay rises remained weak and well below the rate of inflation showing growth at an annual rate of just 0.6% between April and June - the lowest growth in regular pay since records began in 2001.

Commenting on the negative earnings figure, the ONS said it continued to reflect a cut in income tax in April 2013 which prompted many firms to delay bonus payments.

Between April and June, there were 30.60m people in work, 167,000 more than for January to March and 820,000 more than a year earlier.

There were 2.08m unemployed people, 132,000 fewer than for January to March 2014 and 437,000 fewer than a year earlier.

The Bank of England has cited weak wage growth as a reason for keeping interest rates at the historic low of 0.5%.

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