Average wages in Sheffield drop by almost £2,000 since 2008

Work and Pensions Secretary Iain Duncan Smith
Work and Pensions Secretary Iain Duncan Smith

Average earnings in Sheffield have dropped by almost £2,000 per person since 2008 – the worst fall in Yorkshire.

A study by national trade union GMB said the real value of earnings in the city has fallen by 
27.1 per cent between April 2008 and April 2014 – way above the 17.7 per cent average fall for the Yorkshire and Humber region.

It said Sheffield had been one of the worst-hit places by the recession in the entire country.

According to its study of official earnings data, mean gross annual pay for Sheffield workers has dropped from £24,075 in 2008 to £22,239 in 2014.

It said the 7.6 per cent reduction in wage value is equivalent to a 27.1 per cent drop in ‘real-terms’, once inflation was taken into account.

Tim Roache, GMB regional secretary, said: “This must change in 2015.”

Nationally, wages have risen 4.3 per cent from an average of £26,137 to £27,271 – but equivalent to a 15.1 per cent drop in real earnings.

In Yorkshire, the second-biggest drop in real earnings was in York, with a 21.5 per cent fall. Leeds was third with a 21.2 per cent drop.

Doncaster recorded a 17.1 per cent drop, as wages went from £22,441 in 2008 to £22,980 in 2014.

In Rotherham real earnings fell by 12.9 per cent. ONS figures showed pay went from £21,375 to £22,788 over the period.

Barnsley recorded a 10.9 per cent drop in real earnings, as average salaries rose from £21,003 to £22,950.

However, the Government said 637,000 more private sector jobs have been created in the past year.