Falling Pay in the UK
The Institute for Fiscal Studies released an interesting study today looking at wages, employment and productivity in the UK. The economic downturn in the UK since the financial crisis has been marked by relatively low unemployment figures compared to past recessions as well as a fall in productivity. The explanation seems to be that in this recession wages have fallen quite substantially in nominal and real terms. According to a TUC study, in some parts of the UK, average real wages have fallen by 10% since 2007. According to the IFS, the average private-sector worker earned £15.10 per hour in real terms in 2009, and this had fallen to £13.60 in 2011. The IFS study is available here and the BBC's coverage is here.