Saturday, April 11, 2009

Average weekly wages fall for first time since 2001

BT cuts contractors' pay by up to 30% amid growing wage squeeze

Thousands of jobs have been cut in the construction and financial services industries, while those who still have jobs are likely to see pay frozen, or even reduced, in the coming months. Firms run under partnership, such as legal practices, have also seen salaries come down. Many cash-strapped firms have also cut back on contractors or stopped using them altogether to save money. BT has already made about 6,000 contractors redundant over the past few months as part of its plan to cut 10,000 staff. Those who remain with the business had until earlier this week to accept new terms, including lower rates of pay. Cuts are understood to have ranged from 10% to as much as 30%.

Posted by sold out @ 12:24 PM (1002 views)
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4 thoughts on “Average weekly wages fall for first time since 2001

  • Henryweston says:

    No wage inflation on the way to inflate away debts then.

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  • japanese uncle says:

    Today I went to the high street nearby for the first time in two months, just to be stunned to see the row of closed shops. Roughly 15% of all the high street shops appear to have gone. I could almost hear the conversation like this.
    ‘I hate to say this Bob, but there are hundreds of people out there who want your job, If you are not happy about this pay cut, you know what you can do about it’

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  • Similar story in the FT last month – only they claim it’s the first fall since 1991!
    These figures are the ‘mean’ average – I wonder what the median looks like?

    FT: Average earnings fall as bonuses are axed
    March 18 2009

    Pressure on employers to reduce or axe bonus payments in the teeth of the recession has led to the first monthly fall in total average earnings since comparable records began in 1991.

    Average earnings including bonuses fell by 0.2 per cent in January compared with the same month in 2008 according to the Office for National Statistics .

    In the private sector the fall reached 1.1 per cent while average earnings including bonuses in the public sector rose by 3.7 per cent in January – a reduction of 0.2 percentage points compared with the previous month.

    Average earnings including bonuses across all sectors still rose by 1.8 percentage points during the 3 months to the end of January. This compared with a 3.1 per cent average increase in the previous three monthly period.

    Average earnings excluding bonuses rose by 3.5 per cent over the latest quarter, a fall of 0.1 percentage points compared with the previous three months.

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  • «I wonder what the median looks like?»

    I wonder what the average looks like if one includes the unemployed…

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