Boost in UK workers’ pay marks most substantial rise since financial crisis

UK workers have received an effective pay rise of nearly 2% over the past year, as low levels of inflation helped to boost take-home pay, the latest figures suggest.

The rise marks the most significant increase in pay margins since the 2008 recession.

The Office for National Statistics (ONS) has published the provisional results of its Annual Survey of Hours and Earnings (ASHE), revealing that average weekly earnings rose by 1.8% in the year to April, increasing to a figure of 1.9% following adjustment for inflation.

economy

The ASHE measures the level of earnings and the amount of hours worked across every economic sector.

Full-time employees’ median gross annual income has risen to £27,600, a 1.6% increase compared to the previous year, due to the positive wage figures.

Within the previous six years, average inflation-adjusted earnings have fallen.

However, analysts report that the increase in pay does not meet the 3.5%-4% level that is required by the Bank of England, in order for the Bank to consider raising interest rates.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s