Workers lose out on a whopping £1,000 each in just one year as wages plummet thanks to rising inflation
While unemployment levels are falling, 'the next challenge will be getting employees salaries they deserve', study finds
WAGES have plummeted in real terms over the course of the past year, costing workers a shocking £1,000 on average, according to a new study.
Jobs site Adzuna found pay has been hit by rising inflation at the same time as advertised salaries have fallen in half of UK cities, and particularly in the Midlands.
The firm also found that pay for graduates has dropped by over 4% to £23,600 in the past year.
Total advertised salaries fell by a whopping 2.4% to £32,600 in July this year when compared with the same month in 2015, marking the fourth consecutive month of decline.
After the shock of Brexit... rising inflation has entered the ring
Doug Monro
Meanwhile, the “widespread stagnation” in wages has been coupled with an increase in the number of lower-paid and short-term contract jobs employees advertise as they hire temporary staff as opposed to full timers.
This is represented in the number of jobs advertised, which continues to increase – reaching 1.1million in July – a massive increase of 26,000 on 2015.
According to the report, the biggest fall in salaries can be seen in the North East, Eastern England, London and Scotland.
Speaking on his firm’s findings, Adzuna’s Doug Monro said: “After the shock of Brexit, a new Prime Minister and lower interest rates, rising inflation has now entered the ring.
“Not only are advertised salaries falling, but inflation is hitting workers hardest and where it really hurts - their wages.
“Lower-paid roles are becoming more common as finance and tech companies pull back on hiring.
“As we approach the last quarter of the year, the jobs market should see an injection of energy from seasonality and economic stimulus which could lead to a pickup in more senior and permanent hiring and positive salary news for job hunters.
“The resilience of the jobs market can’t be forgotten.
“Vacancies are rising and hiring overall seems to be back on track.
"The unemployment rate has fallen to levels not seen since 2005 and this is hugely encouraging.
"More people are in work - the next challenge is to get them earning the salary they deserve.”
Reacting to Adzuna’s findings, a TUC spokesman said: “These are very troubling figures.
Workers still haven’t seen their wages recover since the financial crisis
TUC spokesman
“Workers still haven’t seen their wages recover since the financial crisis.
“They cannot afford yet another hit to their pay packets.
“The Government must step up investment to ensure that working people do not pay the price for Brexit.
“That means a real industrial strategy, a green light for Heathrow’s third runway, high-speed rail, and a massive programme of house building across the UK.”