Wages have fallen in real terms but jobs market 'resilience' hailed


Wages have fallen in real terms over the past year, costing workers over £1,000 on average, a new study reveals.

Pay has been hit by rising inflation, with advertised salaries falling in half of UK cities, especially in the Midlands, said jobs site Adzuna.

Pay for graduates have fallen by over 4% to £23,600 over the past year, the research found.

Total advertised salaries fell by 2.4% to £32,600 in July, compared with the same month in 2015, the fourth consecutive month of decline.

Alongside the "widespread stagnation" in wages, there has  been an increase in the number of lower-paid and contract jobs advertised by employers as they hire temporary rather than full time staff, said Adzuna.

The number of jobs advertised continues to increase, reaching 1.1 million in July, an increase of 26,000 on a year ago.

The biggest fall in advertised salaries has been in the North East, Eastern England, Scotland and London, said the report.

Doug Monro of Adzuna said: "After the shock of Brexit, a new Prime Minister and lower interest rates, rising inflation has now entered the ring.

"Not only are advertised salaries falling, but inflation is hitting workers hardest and where it really hurts - their wages. Lower-paid roles are becoming more common as finance and tech companies pull back on hiring.

"As we approach the last quarter of the year, the jobs market should see an injection of energy from seasonality and economic stimulus which could lead to a pickup in more senior and permanent hiring and positive salary news for job hunters.

"The resilience of the jobs market can't be forgotten. Vacancies are rising and hiring overall seems to be back on track. The unemployment rate has fallen to levels not seen since 2005 and this is hugely encouraging. More people are in work - the next challenge is to get them earning the salary they deserve."

A TUC spokesman said: "These are very troubling figures. Workers still haven't seen their wages recover since the financial crisis. They cannot afford yet another hit to their pay packets.

"The Government must step up investment to ensure that working people do not pay the price for Brexit. That means a real industrial strategy, a green light for Heathrow's third runway, high-speed rail, and a massive programme of house building across the UK."