Wage crisis deepens with 4.7% drop since 2008

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Wages are down 4.7% since 2008 with senior workers amongst the hardest hit

According to a report published by the Institute for Fiscal Studies (IFS), workers are taking home less money than they were in 2001.

Senior workers, aged 60 and above, and younger workers in the 22 to 29 age range have been hit hardest, with wages down by 9% on 2008.

Men have also been badly affected, taking home an average of 7.3%, less than they did in 2008, whilst among women the fall has been just 2.5%.

The IFS posit that women were “significantly” more likely than men to work in the public sector where pay has fallen less than the private sector, thus reducing their exposure to the collapse in wage growth.

Seizing on the figures, Labour’s Rachel Reeves the shadow work and pensions secretary, said: “This report shows David Cameron has overseen falling wages and rising insecurity in the labour market. ”

Regardless of the political rhetoric, declining wages, rising rents, astronomical house prices and a general increase in the cost of living make it clear that 2008’s great recession is far from over.

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