UK jobless rate falls to five-year low, but real wages shrink

First topic message reminder :

The UK unemployment rate has hits new five-year low.

But average earnings only grow by 0.7% -- well behind inflation -- partly due to bonus effect



Jeremy Cook, chief economist at the currency company, World First, is concerned to see that wage growth has slumped, even as employment increased strongly:

That means interest rates won't rise for another year, Cook suggests:

“Wage growth has fallen to 0.7%, vs 1.2% expected, and this is still a major cause for concern. As a result I am still expecting the Bank of England to hold policy right through into the second quarter of 2015, mainly courtesy of the lack of real wage increases.

http://www.theguardian.com/business/blog/2014/jun/11/uk-unemployment-real-wages-uk-world-bank-live

So basically the Government will be crowing that more people are employed, while in reality the state is still having to pay them because they are paid such low wages they have to claim benefit. Such is the myth of the 'Recovery' built on the backs of the low paid.

Irn Bru wrote:

Tommy Monk wrote:An opposition party promising to do more and increase public spending....... wow.... shock horror!!!
Isn't that what labour are doing now...???
More spending everywhere and sunny times ahead, but not from increased borrowing or taxes of course eh iron....

Growth in the economy through investment rather than just blowing it on nothing which was the Tory policy over 18 years.
You know it's true Tommy.
Now where's that equal venom you were talking about?

Growth fueled by borrowing of PFI investment and personal debt based borrowing spending spree.....




False economy......