UK sees 5.5% drop in real term earnings since 2010
Official figures from the House of Commons library, show that British employees have suffered some of deepest real term decreases in earnings in the European Union.
Apparently, British earnings have decreased 5.5% since the Coalition government took power back in the middle of 2010. The report, which has been adjusted for inflation, shows that out of the 27 member states of the EU only Greek, Dutch and Portuguese workers have fared worse over the same period.
Across the entire European Union, wages fell on average by just 0.7% and if you were employed in Germany you’d be in the pink. Wages have risen by an average of 2.7%
None of this will be much of a surprise to anyone. It’s obvious that the cost of living has dramatically increased these past few years. Food and utility bills, as well as vehicle fuel bill, are certainly much more than they used to. And this has driven inflation, which has been consistently greater than the government’s 2% target. But these numbers have been adjusted for that inflation and represent a real terms fall.
That makes them all the more significant because it shows that across the nation, wages are decreasing by a surprising amount. So what does this mean to the ecommerce seller?
It could be cause for celebration if you’ve managed to increase your own salary over the past 3 years. If you have, pat on the back, you’re bucking the trend.
But it’s also a cause for alarm too. It shows clearly that people just have less cash to spend. And that’s bad news for retailers.