Real wages still down over £40 a week in some parts of the North East, TUC analysis reveals

• Gateshead has suffered the biggest hit to real wages
• Average North East worker has lost nearly £5,000 in real earnings since 2008
• UK has suffered worst real wage slump among leading economies

Pay packets are worth over £40 a week less in some parts of the North East than in 2008, according to new analysis published by the TUC today (Monday).

The analysis shows which local authority areas have suffered the biggest hit to real wages (wages once the cost of living has been taken into account) since the crash.

People working in Gateshead have the most ground to make up. They are still earning 10% less in real terms than a decade ago – the equivalent of £42 a week.

The next worst affected area is South Tyneside (-7%), followed by Middlesbrough and Sunderland where wages are still down by 5%.

The worst pay squeeze in 200 years

The analysis shows that as a result of pay not keeping pace with the cost of living, the average worker in the North East has lost out on £4,890 in real earnings since 2008.

UK workers are suffering the longest real wage squeeze in more than 200 years, with average pay packets not set to recover to their 2008 level until 2024.

The UK is only of two advanced economies (along with Italy) where real wages are still lower than a decade ago.

TUC Regional Secretary Beth Farhat said:

“The government has failed to tackle Britain’s cost of living crisis. As a result many families across the region will be worse off this Christmas than a decade ago.

“While pay packets have recovered in most leading economies, wage growth in the UK is stuck in the slow lane. 

“Ministers need to wake up and get wages rising faster. This means giving all public sector workers the pay rise they have earned and giving unions the right to bargain in more workplaces.

“And it means boosting the minimum wage to £10 an hour as soon as possible.”