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Younger workers hardest hit by financial crisis, study shows

02 Feb 2015

Research by the Institute for Fiscal Studies (IFS) has been released, showing the impact of the financial crisis and economic recovery on UK employees.

For workers aged 60 and older, average hourly pay in 2014 had returned to its 2008 levels, while workers in their 20s were an average of 9% worse off. Average weekly wages were also shown to have dropped by 5.9%, due mainly to a rise in part-time work.

One author of the report, Jonathan Cribb, said: ‘Almost all groups have seen real wages fall since the recession. Women have seen much smaller falls than men. Falls for the low-paid have been somewhat smaller than for those on higher pay, driven by trends since 2011’.

Other key findings show real earnings growth returning to normal, while individuals who have remained full-time in the same job since 2011 have seen their pay rise year on year. However, part-time workers have increasingly reported that full-time hours are not available.

The full report is available here from 4 February 2015.