I still haven't had a pay rise in 5 years.

What field do you work in?

Teaching and research - effectively over 5 years, my salary has decreased by 15% against inflation.

The UK economy has improved based on markers such as unemployment and other statistics, and I dread to think what an unholy mess we'd be in if Labour had been in government. But there are still a heck of a lot of people for whom cost of living has effectively increased and many of these new jobs are zero-hours, casualised labour rather than regular, permanent positions.

Exactly.

Even in these 'amazing' growth years of 2013-2014 the average income for those in the bottom 90% of the tax paying bracket saw their post tax income decrease by 0.9%.

Recovery for some, maybe, but for many there are lean times ahead.

OK. I thought, from your other posts, that you worked in FE. Uni lecturers haven't had any pay rises then? I haven't been keeping up with the current situation.

We just got an agreement for a 2% rise after a year of pointless industrial action (going on a series of one-day strikes simply means working from home and getting no pay). A marking boycott was threatened, which led to the generous 2% offer.

Other than a 1% increase a year ago (which I think was from negotiations over the previous year), my salary hasn't changed in 5 years. In the meantime university chancellors and their pals give themselves ridiculous salaries and pay rises. Not that different than the CEOs of failing banks, really.

That is life all over the world in all sectors and government! Plus low interest rates

Just thought it was worth mentioning that UK unemployment is down yet again to 6.6%. More good positive news for the UK economy.
BBC News - UK unemployment total falls to 2.16m

No denying it is clear good news. The drop in part time, the drop in the number wishing to work more hours, the increase in employment. All very clear good news. Totally contrary to some of the doom-sayers.

BUT Jeremy Warner posed two interesting questions in the Telegraph yesterday. Why is wage growth not better, and why are businesses not investing?
The second is easy enough- if Labour do win the next election (less than a year away) and impose price freezes, windfall taxes etc as they say they will, then no business will invest.

But that would surely increase wage pressure further?

Yes as you say definitely very clear good news. I dont take much notice of the doom sayers anymore, good entertainment value but nothing else

I know I am answering my own question a bit here, but Hamish McRae (my absolutely favourite business journalist for 20 or 30 years) wrote an interesting piece on the lack of wage growth,
Hamish McRae: Jobs are being created faster than at any time since records began – but wages, it seems, remain stubbornly low. What's going on? - Hamish McRae - Business Comment - The Independent

I personally have no doubt that interest rate policy is going to resemble a rubber band. If they don't let it resume its normal course VERY soon, it will snap. It is just utterly insane to pay borrowers for borrowing, which is what the West is doing. The UK is growing far far faster than the doomsayers admit. If policymakers do not acknowledge that soon, get ready for a base rate of not just 4 percent but 6 or 7.

Interest rate policy seems to me to be like rabbits blinking in the headlights, Unaware that it is no car, but a high speed train that is coming at them.

The Ministry of Truth assures us at regular intervals that things are getting better. It does not look like that to me ! I see a new Weimar. The "System" is broken and is not going to get better. Excuse me while I go and restock the nuclear fall-out shelter in my back garden.

You're not alone..........



Standard of living costs for families rise five times more than earnings since before recession, figures show - Telegraph

I must confess as soon as I see "Rowntree Foundation or Trust" in an article I normally skip to the next page. They are a completely political organisation nowadays. Julia Unwin was one of the foremost of Tony's cronies and is clearly gearing up for the election. She is bunging chunks of cash at the 38 Group and IPPR, amongst others.

The Guardian (not exactly a bunch of Conservative supporters) a few months ago published figures that showed a loss in income after inflation of 3.8 percent since 2007.
It would be interesting to see just how much Rowntree has added in to arrive at a calculation that shows an increase in living costs well over double the rate of inflation. All they say is that they have changed some of the components.