Pay set is to go up, or down, or stay the same – it all depends on how you measure it

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Wages & Income

We can expect to hear an awful lot about the closing gap between pay and inflation over the next few months as, inevitably and thankfully, on some measure we close in on a “cross-over point” where wages overtake price rises. But this poses the question: which measure of inflation and, indeed, which measure of pay? … Continued

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Keeping it real

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Wages & Income

Trends in real wages under the new inflation measures Last month’s ONS Consumer Price Inflation release for February 2013 included for the first time two new inflation index series, the RPIJ (1997-2012) and the CPIH (2005-2012). These new measures have been introduced in response to concerns with the current RPI and CPI measures respectively. RPIJ  … Continued

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The Pay Squeeze Just Got Tighter and Longer

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Wages & Income

This post originally appeared on James’s Huffington Post blog As always, it’s the policy pronouncements that attract the attention on Budget day. A cheap pint is much more interesting than the minutiae of OBR figures. But the big story on Wesndesday in terms of its impact on households didn’t come from the Chancellor but from Robert … Continued

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The wage squeeze

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Wages & Income

The OBR’s latest projections for average earnings and inflation suggest that the wage squeeze will look worse over the next few years than previously feared: wages will fall further relative to prices and recover more slowly. Our analysis of the OBR figures shows that the situation is even starker for the ‘typical’ worker – those … Continued

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The squeeze on earnings continues

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Wages & Income

The ONS 2012 Annual Survey of Hours and Earnings release that came out this morning reveals that median real wages have fallen between 2010-11 and 2011-12. Median gross annual earnings for full-time employees were £26,500 for the tax year ending 5 April 2012, an increase of 1.4 percent from the previous year. But over the … Continued

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