Friday, September 6, 2013
Median earnings falling since mid 2000s
Report interesting in the light of discussion of the nature of the recovery. Median wages in the UK have been falling since 2007. see p10-11. but based on OBR projections (for what those are worth) median earnings are not projected to recover by 2016. Figures are in real terms. When RPI is used to adjust for inflation rather than GDP, median earnings were falling since 2006-7 ie before the crash. Since these are for wage earners, they don't reflect changing incomes because of movements into / out of unemployment. But long term unemployment has not been falling. Does a recovery coupled with increased inequality mean most people are not benefiting? How much can the housing market be inflated on the back of this?