The Resolution Foundation has pointed out - real earnings growth has finally returned, but far stronger pay rises will be needed to beat inflation and sustain the pay recovery next year, the Resolution Foundation said today (Wednesday) in response to the ONS Annual Survey of Hours and Earnings.
The 1.5 per cent real earnings growth recorded this year means pay has recovered 13 per cent of the ground lost during the recent pay squeeze. But typical earnings remain 8.9 per cent below their 2009 peak and, on current trends, it will take another six years for typical earnings to return to that level – meaning over a decade of lost pay growth.
Pay growth has been strongest among the lowest ten per cent of earners (3.4 per cent), and weakest (0.5 per cent) among the highest earners. Pay has also recovered more strongly in lower paying roles, such as elementary occupations and among sales & customer services.
The Foundation adds that Northern Ireland and the West Midlands enjoyed strong rebounds in pay, but real hourly pay is still falling in London, East Midlands and Wales.
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