Blackpool is among the worst places in the country for seeing a drop in the real value of average earnings in the recession, a union survey shows.
The fall in the real value of average earnings of all employees in employment between April 2008 and November 2013 in the UK has been 13.8 per cent according to the GMB.
The union said in April 2008 the mean gross annual earnings for all employees according to the Annual Survey of Hours and Earnings (ASHE) was £26,137. The figure for April 2013 was £27,174. This is an increase of £1,037 or just four per cent. Between April 2008 and November 2013 inflation has been 17.8 per cent.
Regional figures showed that London earnings had a fall of 20.4 per cent the largest drop of all 12 regions in the UK.
Next was Yorkshire and The Humber with a drop of 15.4 per cent, while the North West was 13.4 per cent.
Among the towns and boroughs worst was the drop in Hammersmith & Fulham down 49.1 per cent, with Warrington fifth with 24 per cent, and Blackpool tenth with a drop of 22.6 per cent – the worst in the county.
The data was published by Office for National Statistics.
Paul Kenny GMB General Secretary said “These figures showing a drop of 12.8 per cent in the real value of earning explain why we are on our way to a triple dip recession.
“Consumer spending is the single biggest component of demand in the economy and with the real value of wages from employment falling there is no mystery as to why the economy is in a downward spiral.
“The replacing of full time permanent jobs with part time and temporary lower paid jobs is part of this. Pay rises are needed to help hard press families.”
But Paul Maynard, MP for Blackpool North and Cleveleys said: “As the local MP, I have deliberately sought to broaden our economic base, attracting new employers, and creating extra jobs in the private sector as well as defend those in the public sector.
“The challenge facing the UK is to ensure we have an economic strategy which delivers growth and jobs, rather than a reckless economic policy that sees us spending money we haven’t got, pushing Government borrowing up further.
“The best way to improve living standards is to ensure more people have jobs in a growing economy.”
Blackpool South MP Gordon Marsden said: “From talking to people and those people who filled out our surveys, it is evident that the increasing cost of living is an issue many people in Blackpool are facing and having to struggle with.
“It isn’t a surprise when more people in the town are having to take up part time work or work fewer hours.
“The Prime Minister boasts about a recovery, but the truth is that there are a lot of people in Blackpool who are not feeling the benefits of it – this is a recovery for the few.”