Trends in wages and incomes: 2003-2008

Prior to the crash the economy was growing steadily, with real GDP per capita growth of 7.0 per cent between 2003 and 2008, equivalent to an average annual growth rate of 1.4 per cent. Yet the benefits of this relatively strong economic performance did not filter down to the average worker; after accounting for inflation, median wages were essentially the same in 2008 as they were in 2003. The stagnation in wages over this period in turn contributed to a significant squeeze on household incomes and living standards.