David Eiser and Anna Murray
The dramatic fall in wages following the recession of 2008-9 has been well documented. The median weekly real wages of full-time workers in Scotland fell by 5% between 2008 and 2012, and have been increasing at only a sluggish rate since 2013.
Wages are clearly an important measure of living standards, accounting for three quarters of the total income of Scottish working age households.
Wage growth is also a key driver of income tax revenues, and with income tax revenues being almost wholly devolved to the Scottish Parliament in April 2017, Scottish wage growth will become a key indicator of the Scottish Government’s fiscal position.
The ONS yesterday published the latest results from its Annual Survey of Hours and Earnings (ASHE). ASHE is the most comprehensive survey of employee pay, based on a one per cent sample of all employees in the UK. It is based on earnings measured in April of each year, with the latest data now including 2016.
What does yesterday’s release tell us? Continue reading “Wage growth in Scotland: what does the latest data say and why does it matter?”