Pay squeeze returns amidst renewed jobs boom 17 May 2017 Britain kicked off 2017 with a renewed jobs boom and a painful pay squeeze, the Resolution Foundation said today in response to the latest labour market figures. Employment reached an all-time high of 74.8 per cent in the three months to March, while unemployment fell to the lowest level since 1975. In contrast, real average earnings fell by 0.2 per cent. The pay squeeze is set to deepen in the coming months – falling by around 0.5 per cent – with wages showing no sign of keeping up with fast-rising inflation. Stephen Clarke, Economic Analyst at the Resolution Foundation, said: “Britain kicked off the year with another welcome record on employment, and another big fall in unemployment. This welcome jobs boost will provide a much needed boost to family incomes. “However, the good news on jobs is not feeding through to positive news on pay growth, which turned negative at the start of the year and looks set to remain below inflation throughout most of 2017. “Coming so soon after the big post-crisis pay squeeze, this new phase of falling pay means that this decade is set to be the worst in over 200 years for pay packets.”
