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Workers Pay The Penalty For Recession As Average Annual Salary Drops £2,600 In Just Six Months

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http://www.dailymail.co.uk/news/article-1293121/Average-annual-salary-drops-2-600-just-months.html

The average annual salary has dropped by more than £2,600 in the last six months, it emerged today.

New figures reveal employers are still exercising caution, with wages falling across the board from £28,207 to £25,543 - a difference of £2,664.

Salaries in the financial sector appear to have suffered the most - those offered at the point of entry have dropped by almost £12,000.

The figures show that where young bankers could have expected to start on £52,174.43 six months ago, they will probably earn closer to £30,127.60 now.

Staff in the legal sector are also feeling the pinch with pay for new recruits averaging out at £42,583.27-a-year compared with £53,841.50 six months ago - a fall of £11,258.22.

By contrast, the management sector has seen a healthy rise in wages of £6,223.01, despite the current financial climate.

According to UKJobs.net, which published the figures, more companies than ever before are taking on part-time or temporary staff while they weigh up the long-term economic impact of the recession.

David Brown, of UKJobs, said: 'The figures show the economic downturn is still with us and continuing on its downward trend.

'Companies still need staff to operate, but rather than saving money by sacking their workforce they are looking to get more staff for their money to remain competitive.

'We are also seeing an increase in the number of part time vacancies being offered as employers simply can't afford to hire full time staff.

'The better-than-expected unemployment figures over the past year show that UK workers are pragmatic, preferring to be in a lower paid or part time job than out of work entirely.'

Great news for the consumer led recovery.

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It does raise some interesting thoughts in regard to swapping high salary for low salary income.

Our household taxable income has dropped from 23k to 6k. We will eventually drop into work credits, and a 25% reduction in council tax. On top of that my VAT turnover as a couple is around .... £3-4 a week down from £26-40. Government finance is going to be in a right state if that starts happening nationally.

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I wondered when this article would hit the press, my company made this announcement today and I've been fielding questions from the press about it.

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Take a tip, don't get "used to" government credits. Otherwise it'll be quite a shock if they suddenly take them away. It pays to stay ahead of the curve.

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Interestingly, they removed the salary changes from the Public Sector in the announcement.

Got a linky to the original work with data?

The daily hate isn't the most reliable thing on the planet when it comes to revealing any facts that it doesn't like...

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Care to add them back ?

Actually, looks like the Mail haven't edited the stats, they were edited out before they got to them. We provided the stats to our PR company who drafted the release for us, which I signed off. I hadn't noticed the Public Sector item was missing until someone commented on it in the Daily Mail article comments.

Anyway here are the figures:

6 months ago: £15225

Today: £9689

NOTES:

- These include part-time work, which is why the appear to be below minimum wage.

- These are jobs being offered, not people in jobs.

Edited by exiges

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This is DEFLATION, when they talk about DEFLATION they are talking about falling wages, which should reduce the cost of services and products. But it will not, it will just increase the profit of the company, so increase the share price and dividend.

So at the expense of the worker we have falling wages, rising essential item costs, while the rich get richer, they own the shares, its mass robbery of the poor old worker.

The poor get poorer, the rich get richer, if you are in debt it will linger for longer, if you have no debt and own money or companies, i bet you don't get poorer?

P

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.... its mass robbery of the poor old worker.

The poor get poorer, the rich get richer, if you are in debt it will linger for longer, if you have no debt and own money or companies, i bet you don't get poorer?

P

Yes. Well spotted. The Tories won the election.

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This is DEFLATION, when they talk about DEFLATION they are talking about falling wages, which should reduce the cost of services and products. But it will not, it will just increase the profit of the company, so increase the share price and dividend.

So at the expense of the worker we have falling wages, rising essential item costs, while the rich get richer, they own the shares, its mass robbery of the poor old worker.

The poor get poorer, the rich get richer, if you are in debt it will linger for longer, if you have no debt and own money or companies, i bet you don't get poorer?

P

No I think it's debt deflation. Servicing debts with falling incomes becomes a real problem.

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No I think it's debt deflation. Servicing debts with falling incomes becomes a real problem.

Well credit deflation; debt deflation is wage inflation?

But yes falling incomes, along with lingering debts, and in the future rising interest rates so rising servicing costs?

BT workers done better than most?

P

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The poor get poorer, the rich get richer, if you are in debt it will linger for longer, if you have no debt and own money or companies, i bet you don't get poorer?

P

I don't know if you have noticed recently but the rich appear to be rich on debt.

On another note, as stated in a different post, the rich have the power - they employ and manage and influence - and as such they will do ANYTHING and EVERYTHING to ensure it isn't they who suffer. This means cutting everything else to the bone. Why should it be those hard working rich people that suffer? After all they are the wealth generators of the UK and got us to where we are today. Hang on...

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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