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2008’s financial crisis still effect workers’ wages

2008’s financial crisis still effect workers’ wages
17.09.2018
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A decade after the financial crisis and the effects are still being felt on people’s finances. Workers are £800 poorer than 10 years ago.

The substantial impact of the financial crisis has also left people’s wages 3% below what they were 10 years ago, new research reveals. Analysis carried out for the BBC by the Institute for Fiscal Studies shows that on average people’s real annual wages are £800 lower.

And that people who are aged between 30 and 39 now are earning £2,100 a year less and &% drop compared to people of the same age group in 2008. For those in their 20s, the decline is 5%, compared with the drop for the over-60s in work of 0.7%, or £130. In 2008 the average wage was £24,100 last year is was just £23,300.

Paul Johnson, director of the IFS, said: “The average earnings of those in their 20s and 30s fell especially sharply in the immediate aftermath of the recession, perhaps as employers were able to cut starting wages more than wages of those already in work.” adding that “Pensioners have done much better than younger people on average. In part this is because they are less reliant on earnings and so haven’t suffered from falls in earnings.” Going to say that the “government has chosen to protect the state pensions and other benefits received by pensioners,” Mr Johnson said.

The effect of the financial crisis has so had other nock on effect on the personal debt levels are at record highs,  while personal saving is at a low and fewer and fewer banks on the high street makes it ever so hard for those looking to move on to the housing ladder and become mortgage borrowers.

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