Pay packets in the south west of England have fallen by 10% since 2007, according to research by the Trades Union Congress (TUC).
The TUC’s analysis of the Office for National Statistics’ (ONS) Annual survey of hours and earnings and its Labour force survey, both published in March 2013, found that, on the eve of the recession in 2007, workers across the south east earnt a total of £57 billion (in 2012 prices).
However, despite rises in employment, a combination of falling real wages, reduced hours and changes in the type of jobs people do, the region’s total pay packet has reduced by £5.7 billion over the last five years.
The analysis showed that the rise in the number of people in work since 2007 has failed to offset the real-term cuts to employees’ wages.
Frances O’Grady, TUC general secretary (pictured), said: “Taken together, our pay and jobs crises have shrunk Britain’s total annual pay packet by more than £50 billion.
“It’s no wonder employers are struggling when so much demand has been sucked out of the economy.
“Britain’s shrinking wages are hitting people’s living standards, holding back businesses and damaging our growth prospects. Britain desperately needs a pay rise.”