The Office for National Statistics has reported that the average employee faces a decline in their wages by 3.3 per cent.
This will cut their annual income by Ã‚Â£782, despite the cost of living going up by 5.1 per cent, which could encourage more firms to look up dispute resolution advice should they come up against angry members of staff.
Mervyn King, the governor of the Bank of England, said most of the people who were not responsible for the economic downturn are “now suffering a squeeze on real living standards for which the current rate of inflation is the obvious symptom”.
He added that it is the “price we are all paying” for the financial crisis in order to rebalance the economy.
This news comes after the Chartered Institute for Personnel Development reported that there are a number of employees who are fearful over their job security, revealing that 53 per cent of workers have already faced pay freezes or salary cuts.
Posted by Cameron Thomson