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Wage Increases Stop For 41% Of Uk Workforce

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http://business.timesonline.co.uk/tol/busi...icle6805241.ece

Average British pay rises are running at just 1 per cent, with close to half of workers in the private sector having their pay frozen this year, according to new research.

About 41 per cent of all pay deals were pay freezes, according to an analysis of 46 settlements carried out by Industrial Relations Services (IRS) in the second quarter.

The average pay award in the manufacturing sector was 0.3 per cent. The public sector fared a little better, recording an average settlement of 2.3 per cent, according to the research.

Sarah Welfare, of the IRS, said: “Pay awards have taken a far greater hit in the current recession than they did in the recessions of the 1980s and 1990s, our data suggests. All evidence suggests that pay awards will remain subdued for the rest of 2009.â€

“With rising unemployment, a low minimum wage rise due in October and headline inflation in negative territory, the chances of higher pay rises for employees in the near future will be slim.â€

The pay freeze data comes as unemployment continues to increase. The latest figures from the Office for National Statistics show that unemployment hit a 14-year high of 2.44 million in the three months to the end of June, with 16 to 24-year-olds the worst hit.

It's the recovery.

How can house prices recovery if wages are frozen or will limited supply come into play?

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fan or not...it would appear that Mr Brown has manipulated the ecomomy so that a boom would follow on a lot quicker and at an accelerated rate following bust. House prices have been inflated until the recovery.

However, like the Tories in 97 paving the way for the biggest boom in history- his days are numbered.

Worry is that Cameron is clueless!

I hate career politicans...

You should only be allowed to become an MP after 10 years of relevant "real life" work experience whether it be a barrister or a street cleaner.

Brown, Cameron, Osbourne have been in Uni to politics....!

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House prices are allowed to go up as much as they like.

Same with stock prices. Energy prices. Even food prices.

And money is allowed to be printed.

But wages for the average person must never be allowed to go up too quickly,

otherwise we might get inflation.

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House prices are allowed to go up as much as they like.

Same with stock prices. Energy prices. Even food prices.

And money is allowed to be printed.

But wages for the average person must never be allowed to go up too quickly,

otherwise we might get inflation.

Agreed 100%. We're getting stuffed. Especially the younger generation.

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http://business.timesonline.co.uk/tol/busi...icle6805241.ece

It's the recovery.

How can house prices recovery if wages are frozen or will limited supply come into play?

Don't be silly. House prices go up at five times the average wage, look at the last ten years. (Forget about that little blip over the last two). Jump in now before you get left behind.

Yours, Krusty Allslop.

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Guest absolutezero
beware the public sector .. at some point Mugabrown will understand that handing out free money to the sector is the only hope he has of getting inflation to wipe away his mess..

Beware a small sample size.

46 settlements? I'd not hang a hat on that.

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beware the public sector .. at some point Mugabrown will understand that handing out free money to the sector is the only hope he has of getting inflation to wipe away his mess..

I agree - this is the area that will get the first dip of public money.

I'd say that he'll be sneekier than just giving straight pay rises - they will probably be target related - like the doctors - they will effectively get 40% more for doing 50% less.

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"The average pay award in the manufacturing sector was 0.3 per cent. The public sector fared {a little} eight times better, recording an average settlement of 2.3 per cent, according to the research."

Corrected.

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Guest KingCharles1st

There's nothing quite like getting a 3% hourly rate pay rise- but finding you only get to work 4 days a week... like the engineering supply co. sales guy i spoke with yesterday

Just another KC anecdotal...

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0% pay increase for me. Indeed, it could be argued that they have imposed an effective pay cut, due to the unacheivable nature of bonuses and commission.

But hey, I've still got a job.

How many are on short time or have lost overtime, that results in an effective pay cut?

But hey, green shoots are here and here to stay...

...wait until the Autumn.

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Guest absolutezero
"The average pay award in the manufacturing sector was 0.3 per cent. The public sector fared {a little} eight times better, recording an average settlement of 2.3 per cent, according to the research."

Corrected.

In a survey where only 46 responses were made.

I'm not saying that the data is wrong but it can't be trusted because it's not a large enough sample size.

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I agree - this is the area that will get the first dip of public money.

I'd say that he'll be sneekier than just giving straight pay rises - they will probably be target related - like the doctors - they will effectively get 40% more for doing 50% less.

Meanwhile the lower ranking staff will be expected to do more for less.

Pay rises for the middle classes so they vote correctly.

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"The average pay award in the manufacturing sector was 0.3 per cent. The public sector fared {a little} eight times better, recording an average settlement of 2.3 per cent, according to the research."

Corrected.

PLUS their annual pay scale rises.

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In a survey where only 46 responses were made.

I'm not saying that the data is wrong but it can't be trusted because it's not a large enough sample size.

The ONS runs its own experimental series on average weekly earnings (AWE) which is likely to ultimately replace the AEI series.

The data in the OP seem credible.

avearnings0609.gif

http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14015

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there are some 1million council workers who are affected by the national pay negotiations ongoing, where the original offer was 0.5% by the local govt. association.

http://www.lgcplus.com/jobs/anger-over-lga...5004125.article

Even a revised offer is said to be below 1.5% for low paid staff only, so most staff will probably be some way off that average of 2.3% for the public sector.

That's not to say what some of the councils, who are a bit peeved at increased offer above 0.5%, won't try and squirm out of any deal above that. :lol:

I'm not convinced there's much impact on the affordability angle between a 0.5% and 2.5% pay rise for those on moderate salaries....many of these will have seen mortgage repayments come down substantially so they don't rely so heavily on pay rises.

What is more crucial is job security. remember the talk of 3million unemployed, well i'm not so sure we'll get there now - it's too much of a political own goal that nulabour won't let it happen. lloyds reviewing it's decision to close C&G branches and axe jobs is just a small example. Many more of those to come i suspect.....buoyed by recovereh in global economy and fiscal stimulus.

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snip

I'm not convinced there's much impact on the affordability angle between a 0.5% and 2.5% pay rise for those on moderate salaries....many of these will have seen mortgage repayments come down substantially so they don't rely so heavily on pay rises.

What is more crucial is job security. remember the talk of 3million unemployed, well i'm not so sure we'll get there now - it's too much of a political own goal that nulabour won't let it happen. lloyds reviewing it's decision to close C&G branches and axe jobs is just a small example. Many more of those to come i suspect.....buoyed by recovereh in global economy and fiscal stimulus.

trouble is, its those on the the lower salaries that will hav taken the largest multiples on mortgages...they had to or bow out of the market.

and this government cant afford to stop unemployment rising. even if they try, the costs are going to shoot up and taxes will rise later so dampening future demand...a self defeating exercise.

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