Unemployment falls, but so do wages

Today new figures reveal that unemployment in England and Wales is continuing to fall. But, before the Tories start hurling ‘I told you so’ at Labour through the press, they should note that the same stats from the Office of National Statistics (ONS) show that wages are falling too.

The ONS has found that the number of unemployed people in Wales has fallen by 3,000 in the past three months, leaving unemployment rates at 6.7% in Wales and 6.4% in the UK.

Meanwhile, since last year, average pay has dropped by 0.2% in real terms.

In response, Stephen Timms, Shadow Employment Minister has highlighted the problems with the Tory policy on employment, explaining:

 “While today’s fall in overall unemployment is welcome, it’s extremely worrying that the figures have shown pay falling far behind inflation, and the change in regular pay being the lowest ever on record. Millions of working people face a cost-of-living crisis which has left them over £1600 worse off since 2010.

“For Iain Duncan Smith to claim that people are ‘better off’ in the face of these figures shows just how out-of-touch this Tory-led government is.

“A Labour government would extend free childcare provision, freeze gas and electricity bills, raise the minimum wage and build more homes to tackle the cost-of-living crisis. We would also bring in a Compulsory Jobs Guarantee to get the next generation into jobs and tackle the high levels of long term unemployment.”