
Published time: June 12, 2013 11:25

Striking public sector workers march in protest through central London (AFP Photo)
The UK has been going through its deepest recession
since World War II, a report by the Institute for Fiscal Studies claims.
Workers experienced unprecedented pay cuts of 6 per cent over the last
five years since the Global Financial Crisis began in 2008.
Between 2010 and 2011, 70 per cent of employees who stayed in the
same job fronted real wage cuts, while a third of those workers
faced nominal wage freezes or cuts (12 per cent experienced
freezes and 21 per cent experienced cuts).
The last time that such a high proportion of workers faced real
wage cuts was between 1976 and 1977, when inflation exceeded 15
per cent. The proportions of nominal wage freezes and cuts are
said to be the highest since the series of wage cuts began in the
mid-1970s, according to the Institute for Fiscal Studies latest
report.
The period since the recession began in 2008 has seen the longest
and deepest loss of output in a century. Real wages have fallen
by more than in any comparable five-year period; productivity
levels have dropped to an unprecedented degree, the British think
tank revealed.
Average real hourly wages amongst workers who stayed in the same
job have fallen faster in the private sector than in the public
sector over the last few years, such that the public-private
sector wage gap has increased substantially over this period.
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