Researchers of the respected independent think-tank, the Institute for Fiscal Studies, have shown that the employment rate has flattened and real earnings growth stalled. Commenting, Lib Dem Shadow Chancellor Susan Kramer said:
“This stall in average earnings is yet another sign that this Government is failing ordinary workers. Despite a huge increase in the take up of higher education, this has not translated into any gains for take home wages.
“This data shows that people are poorer under the Tories and have not seen wages come back to the pre-recession level, while prices and bills seem to spiral upwards. It is scandalous that it will take 14 years for people to feel as rich as they were in 2007.”
After adjusting for inflation, average earnings of employees are still substantially below pre-recession levels, and are currently being squeezed by rising household inflation (linked in large part to falls in sterling). Central forecasts from the OBR imply average earnings will still be lower than their 2007–08 level in 2021‒22.