|Date:||29 January 2015|
|Authors:||Jonathan Cribb and Robert Joyce|
The employment rate has returned to its pre-crisis level, but wages remain well below their 2008 peak. Median hourly wages, adjusted for (RPIJ) inflation, were still 4.7% lower in 2014 than in 2008 (according to the Annual Survey of Hours and Earnings).
New analysis by IFS researchers shows that these changes have affected different groups in quite different ways. Women, older workers and the low-paid have seen smaller real wage falls than men, younger workers and those on higher pay.
Key findings from this work, which forms part of the forthcoming IFS Green Budget 2015, which is produced in association with ICAEW and funded by the Nuffield Foundation, include:
Jonathan Cribb, an author of the report and a Research Economist at IFS, said, "Almost all groups have seen real wages fall since the recession. The pay of young adults remains well below its pre-crisis level after particularly large falls between 2008 and 2011, while the average pay of those aged 60 and over has already recovered. Women have seen much smaller falls than men. Falls for the low-paid have been somewhat smaller than for those on higher pay, driven by trends since 2011."
We are delighted to have produced this year’s Green Budget in association with ICAEW and with funding from ICAEW and the Nuffield Foundation. We are also grateful to the Economic and Social Research Council for funding much of the day-to-day research at IFS that underpins the analysis in this report.
Notes to Editors:
1. 'Earnings since the recession' by Jonathan Cribb and Robert Joyce is a pre-released chapter from the IFS Green Budget 2015, edited by Carl Emmerson, Paul Johnson and Robert Joyce. For an embargoed copy of this chapter, please contact Bonnie Brimstone or Jonathan Wood at email@example.com / 07730 667 013 / 020 7291 4800.
2. The full Green Budget 2015 publication, with analysis from IFS and additional analysis from ICAEW and Oxford Economics, will be launched at 10:00 on Wednesday 4 February 2015 at Church House conference centre, Westminster (http://www.ifs.org.uk/events/1110). Please email firstname.lastname@example.org if you wish to attend.
3. ICAEW is a world leading professional membership organisation that promotes, develops and supports over 144,000 chartered accountants worldwide. They provide qualifications and professional development and share their knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession. As leaders in accountancy, finance and business ICAEW members have the knowledge, skills and commitment to maintain the highest professional standards and integrity. Together they contribute to the success of individuals, organisations, communities and economies around the world. Because of this, people can do business with confidence. ICAEW is a founder member of Chartered Accountants Worldwide and the Global Accounting Alliance.
4. The Nuffield Foundation is an endowed charitable trust that aims to improve social well-being in the widest sense. It funds research and innovation in education and social policy and also works to build capacity in education, science and social science research. The Nuffield Foundation has funded this project, but the views expressed are those of the authors and not necessarily those of the Foundation. More information is available at www.nuffieldfoundation.org.