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It predicted an earnings squeeze for the average Briton as bad as any in the past 70 years, and public debt climbing to Spanish levels.
The figures confirm that the earnings squeeze pre-dates the 2007 recession, appearing to endorse Ed Miliband's claim that the link between wages and growth has been broken, one of his chief justifications for his willingness to intervene in the market.
In other words most of the earnings squeeze is what economists (curse them) call a compositional effect - it is caused by those entering the work force or changing jobs getting lower pay rates than those in steady employment.
Similar(57)
Australia's largest brewer, the Foster's Group, reported an 18percentt decline in net income for fiscal 2003, with earnings squeezed by a competitive wine market in the United States and a restructuring charge to revitalize the company's dominant beer unit.
O'Grady said Britain's self-employed had been the hardest hit by the prolonged pay squeeze, with average earnings of £207 a week – less than half that of employees – and with no sick or holiday pay, and no employer to contribute towards their pension.
Your article (Chancellor signals pay squeeze for public sector, 6 July) uses misleading earnings figures which seemingly give credence to the urban myth.
Confirming that the UK's long pay squeeze has come to an end, workers secured a 1.8% rise in average annual earnings in the year to April.
Investors are rewarding big-capitalization technology stocks for their ability to churn out solid earnings even as other companies see their profits squeezed by dwindling overseas demand.
Starting in the 1970s, earnings were squeezed for low- and middle-income households.
Stiffer competition and changing tastes might squeeze earnings at home, and the company lacks a thriving global business to fall back on.
Her calls for fairer pay and representation for workers come as labour market experts warn of a tough 2017 for workers, when rising inflation and economic uncertainty could squeeze earnings.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com