Tuesday 21 January 2014

UK pay squeeze worst for public sector and manufacturing


Workers in Britain's public sector are £23 a month worse off than a year earlier in real terms
The squeeze on real wages for UK workers has been toughest for those in public sector jobs and manufacturing, according to new figures.
Workers in Britain's public sector are £23 a month worse off than a year earlier in real terms, according to VocaLink, the company processing salary payments for much of the British workforce.
The figures show a divide between sectors when it comes to who is worst affected by the failure of average pay growth to keep pace with inflation.
Public sector workers' take-home pay in real terms – adjusted for inflation – was down an annual 1.4% during the three months to the end of December. That was a slightly softer pace of decline than the 1.8% drop in the three months to November. In comparison, annual real wages grew in the services sector, albeit by just 0.5%.
Real take-home pay in the manufacturing sector fell again in December but at a slower pace. The annual decline was 1.1%, after a 1.6% fall in the three months to the end of November.
David Yates, VocaLink chief executive, said: "When taking into account inflation, thousands are worse off in comparison to salaries 12 months ago. The experiences of those in the public sector come in stark contrast to above-inflation wage increases in the services sector."
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