⚫️ FACT CHECK: Are UK wages rising?
Here's what the data says about Boris Johnson’s claim that earnings are growing 🧵
inews.co.uk/news/politics/…
Here's what the data says about Boris Johnson’s claim that earnings are growing 🧵
inews.co.uk/news/politics/…
🗓️The PM sparked a backlash following an appearance on The Andrew Marr Show, in which he claimed that “finally after all these years you’re seeing growth in wages”.
Sceptics said the claims were to boost the nation’s hopes ahead of a potential cost-of-living crisis this winter.
Sceptics said the claims were to boost the nation’s hopes ahead of a potential cost-of-living crisis this winter.
💬 Boris Johnson said:
"Wages are finally going up for the low-paid, and they’re going up faster than for those on high incomes.
“And about time too… Wages have been totally flatlining for more than a decade.”
"Wages are finally going up for the low-paid, and they’re going up faster than for those on high incomes.
“And about time too… Wages have been totally flatlining for more than a decade.”
⚫️What numbers is the PM referring to?
In June, ONS data showed the annual growth of average weekly earnings in the UK was at a 20-year-high.
But while annual growth rates are usually a reliable indicator for wage growth, data has been slightly warped due to the pandemic.
In June, ONS data showed the annual growth of average weekly earnings in the UK was at a 20-year-high.
But while annual growth rates are usually a reliable indicator for wage growth, data has been slightly warped due to the pandemic.
Work and Pensions Secretary Therese Coffey recently described the average earnings rise as a 'statistical anomaly'.
⚫️Because:
The growth appears artificially inflated because wages are being compared to a very low baseline last year - when the economy stalled in the pandemic.
⚫️Because:
The growth appears artificially inflated because wages are being compared to a very low baseline last year - when the economy stalled in the pandemic.
⚫️Another factor to consider is:
Lower-paid people were at greater risk of losing their jobs during the pandemic, which has resulted in fewer lower-paid people in the workforce.
⬇️
That in turn has driven up the average wage across the economy.
Lower-paid people were at greater risk of losing their jobs during the pandemic, which has resulted in fewer lower-paid people in the workforce.
⬇️
That in turn has driven up the average wage across the economy.
❓ What will low wage growth mean in practice?
Poor wage growth will likely compound temporary price hikes as a result of the HGV shortage.
It may also exacerbate labour shortages across other sectors - companies often struggle to fill jobs if they cannot offer attractive pay
Poor wage growth will likely compound temporary price hikes as a result of the HGV shortage.
It may also exacerbate labour shortages across other sectors - companies often struggle to fill jobs if they cannot offer attractive pay
⚫️ Are UK wages rising? The answer is yes and no...
Read more here from @poppyeh and @tomjs ⬇️
inews.co.uk/news/politics/…
Read more here from @poppyeh and @tomjs ⬇️
inews.co.uk/news/politics/…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
