More jobs, lower wages

Image from Toxi: http://www.iamtoxi.co.uk/

Figures from the Office for National Statistics (ONS) show British economy grew 1.9 per cent last year, while the number of people in work is at record high of 30.7 million.

Prime Minister David Cameron tweeted: “The GDP figures are another sign our long term economic plan is working – more growth means more jobs, security and opportunities for people.”

Millions more are working, however, they are earning less.

In fact, real wages have fallen to their lowest level since records began in 2001. 

Also, growth has fallen to minus 2.2 per cent since the first quarter of 2010, the ONS figures show.

Trades Union Congress (TUC) general secretary Frances O’Grady said: “Britain’s workforce is getting larger but poorer.”

Unite Union’s general secretary Len McCluskey added: “Millions are struggling to pay households bills because wages are so low.”

While the squeeze on family incomes shows no signs of ending, the Bank of England interest rates will rise for the first time since 2007, if unemployment rate hits the seven per cent threshold.

The fact that record numbers of people are still working part-time, as they cannot find full-time employment, is another issue the Government should tackle soon.

There is still a long way to go to restore pre-recession living standards through better pay and more stable jobs.

Ms O’Grady added: “The real test for the Government is whether everyone will share in the recovery, not just a favoured few.”