British workers take biggest drop in real wages of all G20 countries

[tay]

British workers suffered the biggest drop in real wages of all major G20 countries in the three years to 2013, according to the International Labour Organisation (ILO).


Labour said the report underlined why the government has been unable to get the deficit down. Chris Leslie the shadow Treasury chief secretary said: “Not only are working people worse off under the Tories, we’re also doing worse than all other G20 economies. On average working people are now £1600 a year worse off since 2010.


“As the Autumn Statement showed, and these figures help confirm, the continuing squeeze on living standards is leading to a shortfall in tax revenues. And this is a key reason why George Osborne has broken his promise to balance the books.”


The ILO report reveals that wages in the UK have fallen more than in Italy. The biggest fall in UK wages adjusted for inflation came in 2011, when they fell by 3.5%. In Italy, which was one of the countries hit hardest by the eurozone crisis, real pay fell by “only” 1.9%.


This despite the fact that Italy’s economy has been shrinking for three consecutive years now, and unemployment recently hit a record high of 13.2%.




more




British workers suffer biggest real-wage fall of major G20 countries | Business | The Guardian

 

[B00Mer]

Well Globalization... keep supporting cheap labor in China, buying our shyte from WalMart.. what do you think is going to happen..

Standard of living will drop, rich will get richer and we all will be corporate owned..

...and on that positive note:

 

[DaSleeper]

 

[captain morgan]

There it is... Australia and Canada at the top of the heap while the UK falls to the lowest in the EU.

Does not bode well for this prosperous economy in Britain that I have heard all about

British workers suffered the biggest drop in real wages of all major G20 countries in the three years to 2013, according to the International Labour Organisation (ILO).

Ouch.

 

[Tonington]

So what does that tell us about the UK economy? If you look at GDP growth, UK is doing great. Looking at wage growth, not so great. It's kind of naked to look at the two in isolation without relating it to changes in productivity.

 

[captain morgan]

It tells me a few different things:

1. The UK was late (much later than the rest of the G20) to climb out of the recession
2. Britain has far too much debt
3. The rise in GDP is still not enough to keep the ship from sinking
4. Deflation is a huge risk
5. Flight of Capital is now a risk
6. Any interest rate increase may push the numbers even lower

 

[petros]

Another shift further towards a fully consumption based economy.

 

[captain morgan]

The UK has almost no exports as is.... Of course I am not including their biggest export commodity of professionals and skilled labor that are migrating to Canada daily

 

[Tonington]

It tells me a few different things:

The UK was late (much later than the rest of the G20) to climb out of the recession

Yes, but most people use GDP to measure recession, and we know that real wages and GDP often don't move together. Look at the last 40 years of GDP growth in the US, compared to the real wage rate.

Britain has far too much debt

My salary has grown despite the changes in national debt over the last 5 years, well 5 years in February (+63% of my starting salary), and Canada's debt as a percentage of the GDP is not so different from the UK. I don't think that national debt is a good barometer of private sector wages. And further, the spending that nations undertook during the recession took place at a time when interest rates were basically zero and remained zero, which shouldn't have dissuaded private sector financing. My company doubled it's R&D budget, nearly doubled our head count, and made large capital expenditures over that period.

I think we tend to talk about economies too broadly. The big picture stuff, like real wages and GDP, there is far too much involved, and far too much detail left out to talk so simply about them.

 

[Blackleaf]

The UK has almost no exports as is....

Britain is the world's fourth-biggest exporter after China, the USA and Germany.

Canada is only 11th.

It helps when you do some research.

There it is... Australia and Canada at the top of the heap while the UK falls to the lowest in the EU.

Does not bode well for this prosperous economy in Britain that I have heard all about

The British economy is the best-performing major western economy on Earth. It will post the fastest GDP growth in 2014 of all the major Western economies and unemployment, which is already lower than Canada's, continues to fall (it's expected to fall to 5% by 2018 ) whilst Canada's rises.

The rise in wages is only one TINY indication of how well an economy is doing. On the major indictators - GDp growth, unemployment - Britain is outperforming everybody else.

 

[captain morgan]

Yes, but most people use GDP to measure recession, and we know that real wages and GDP often don't move together. Look at the last 40 years of GDP growth in the US, compared to the real wage rate.

GDP is used to measure many different things, it is not mutually exclusive to any one indicator.

My salary has grown despite the changes in national debt over the last 5 years, well 5 years in February (+63% of my starting salary), and Canada's debt as a percentage of the GDP is not so different from the UK. I don't think that national debt is a good barometer of private sector wages. And further, the spending that nations undertook during the recession took place at a time when interest rates were basically zero and remained zero, which shouldn't have dissuaded private sector financing. My company doubled it's R&D budget, nearly doubled our head count, and made large capital expenditures over that period.

National debt can impact many different things (obviously). In the case of the UK, there is a reasonable suggestion that their ability to service that debt is in question. The repercussions from that translate into policy decisions (often taxation related) that in turn impact the economy as a whole. Equally as important is the reaction from the intl community in terms of decisions to transact with (or within) that economy... It can represent a double-whammy in both a negative or positive way

Canada has huge debt, particularly if you consider the unfunded liabilities component... What makes our experience more 'affordable' relates to the income demographics (read: a sizable middle class with relative income). Add to this that Canada has a strong resource sector (translates into exports), this represents 'new money' that impacts our equation. These 2 elements, in addition to many others, translates into Canada's debt being more manageable and consistent.

In terms of salary, consider the differences between Canada and the UK in terms of after-tax, disposable income.

In Canada, Depending on where you as an income earner, you have 'X' amount to apply as disposable (house, car, luxury items, investments, etc).

The base #'s between the 2 nations can be comparable, now assess the cost of living, inflation (deflation), etc and you'll have a more complete picture

I think we tend to talk about economies too broadly. The big picture stuff, like real wages and GDP, there is far too much involved, and far too much detail left out to talk so simply about them.

You are correct, however, as the entire area is so remarkably complex and has a multitude of variables, the macro picture is the most practical way (for people like you and I) to analyze the situation.... It doesn't suggest that the commentary is therefore inaccurate, but it is by no means fully comprehensive

Britain is the world's fourth-biggest exporter after China, the USA and Germany.

Canada is only 11th.

I told you, I didn't count your biggest export, skilled workers and professionals. They are all moving to Canada

The rise in wages is only one TINY indication of how well an economy is doing. On the major indictators - GDp growth, unemployment - Britain is outperforming everybody else.

Keep telling yourself that BL.... Meanwhile, your labor force is making less than every other country in analysis

 

[Blackleaf]

In terms of salary, consider the differences between Canada and the UK in terms of after-tax, disposable income.

The after tax disposable income in Canada and Britain are almost exactly the same. Canada is ranked sixth in the world and the UK seventh and there's little that separates them.

I told you, I didn't count your biggest export, skilled workers and professionals.

Britain's biggest export (39% of total exports) is financial services.

They are all moving to Canada

Says who?

Meanwhile, your labor force is making less than every other country in analysis

The UK is the world's sixth-largest manufacturing nation measured by value of output and the world's fourth-largest exporting nation. It's also about to overtake France to become the world's fifth-largest economy and will, in the not-too-distant future, overtake Germany.

 

[captain morgan]

Here's a link for you to read:

British workers take biggest drop in real wages of all G20 countries

 

[Blackleaf]

Here's a link for you to read:

British workers take biggest drop in real wages of all G20 countries

You're getting so desperate that you're now providing me with a link on the same topic that this whole thread is about.

That drop in real wages occurred between 2010 and 2013 when Britain was suffering its biggest recession since the 1940s. But Britain is now recovering from that recession and is now outperforming every other major Western economy, including Canada's.

And despite that dip in wages, British average after tax wages are still almost identical to Canada's and are still the seventh-highest in the world. The British are richer than the Germans, French and Italians, with only the Irish and Luxembourgers get more take-home pay in Europe.

 

[captain morgan]

They are still at the bottom... What part of this don't you get?

 

[Blackleaf]

They are still at the bottom... What part of this don't you get?

They're not at the bottom of anything. Britain's average after-tax wages are about the same as they are in Canada.

 

[captain morgan]

They're not at the bottom of anything. Britain's average after-tax wages are about the same as they are in Canada.

Sure, Bl... Sure.

 

[taxslave]

They're not at the bottom of anything. Britain's average after-tax wages are about the same as they are in Canada.

SO what about all those non whites that you claim do not work but only collect welfare?

 

[Blackleaf]

Sure, Bl... Sure.

The average yearly wage in Canada is CAN$48,250 (£27,080.45).

The average yearly wage in the UK is £26,500 (CAN$47,215.80).

 

[captain morgan]

SO what about all those non whites that you claim do not work but only collect welfare?

Maybe Blackie should take a look at this before he shoots his mouth off

List of countries by tax rates - Wikipedia, the free encyclopedia

The average yearly wage in Canada is CAN$48,250 (£27,080.45).

The average yearly wage in the UK is £26,500 (CAN$47,215.80).

Factor-in the after tax income and cost of living.