According to research conducted by The Institute for Fiscal Studies, since 2008 salary cuts in the UK were record-high compared with other five-year periods in country's modern history. For the last six years there was a 6 percent decrease in incomes in the UK.
It was estimated, on average, during the last century salaries grew 2 percent a year. Thus, at the moment citizens earn 15 percent less than they could have gained if the tendency that was before crisis preserved.
The report reads the major part of cuts of real income occurred to the workers who preserved their working places. Inflation and dismissals of high-paid workers played a minor role.
According to The Guardian, citing IFS director Paul Johnson, the prolonged periods of salary cuts were observed in 1980s, 1990s, and 1930s. However, since 2008 it has been deeper and longer.
Recently, official figures showed that UK industrial production had been shrinking. On average, factories output was 10 percent less than that of 2007. Nevertheless, in April UK Industrial output grew 0.1 percent, in March it was a 0.7 percent increase.
In February, the Office for National Statistics showed wages in the UK hit the level of 2000s. It was noted for the last three years Britons' salaries fell 3 percent.
For the last five years, the UK suffered two recessions. During the global economic crisis in 2008-2009, the country's GDP fell for five months in a row. At the end of 2011 and in the first six months of 2012 UK economy was shrinking for three consecutive quarters. Only in the third quarter 2012 the country's GDP started to grow.
