Workers’ wages are lower than a decade ago, but bankers flourish
New analysis published by the TUC today shows that real wages are still £17 a week lower than a decade ago. But they are up more than £120 for those working in the finance sector.
In most sectors of the economy wages are still worth less than before the financial crisis. However, a small number of industries have bucked that trend.
Average real pay in the financial sector has increased by 9.3% (£119 per week) since 2009 reaching a record average of £1,405 per week.
Other sectors that have seen real wage growth include, retail and hospitality, which are likely to have been boosted by increases to the minimum wage.
While pay has recovered for bankers, the story is very different for public sector workers.
People employed in health and social work and education are still £36 a week worse off than in 2009.
The TUC says this is a clear consequence of the government’s decision to hold back the pay of hardworking teachers, nurses and other public servants behind rising prices.
The hardest hit workers are those working for membership organisations, repair services and in furnishings. Their pay £86 per week lower in real terms than a decade ago.
The next worse performing sector is manufacturing of food and drink, where real pay is still down by £52 per week.
TUC General Secretary Frances O’Grady said: “It’s not right that pay is racing ahead in the City when most working people are still worse off than a decade ago.
“The architects of the financial crisis are earning record amounts while teachers and nurses struggle to get by.
“Workers deserve a much fairer share of the wealth they create. That’s why unions need new rights to access workplaces and negotiate industry-wide rates.
“Pay inequality helped drive the last financial crash. It can’t be left unaddressed.”
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