New research from recruitment experts Reed has revealed that despite the increase in interest rates, the cost of living and energy prices, salaries in the South West are not keeping up.
TUC South West regional secretary, Nigel Costley, said that there is another crisis that is not being talked about so much and that is the "pay crisis". He predicts that over the next few months the situation "is going to be awful" for those on the lowest pay.
From analysis of more than 9.35 million jobs posted on Reed.co.uk across the UK since 2018, advertised salaries are sitting at pre-pandemic levels, with any rise over the past two years dropping back down to 2020 levels. Salaries in the South West are no exception, as they lag behind soaring living costs, much like the UK average.
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The TUC regional secretary said, “We’re seeing a squeeze on wages, the likes of which we haven’t seen for a hundred years. Workers need a pay rise, it’s not just a cost of living crisis, it’s a pay crisis and we spent the last 20 years being squeezed in terms of pay.
“While those at the top of organisations have been able to enjoy salary increases and bonuses, most people going to work, especially key workers, have seen their wages squeezed and squeezed and squeezed.
“The power of trade unionism is being rediscovered in many ways. There’s a recognition that the only way you’re going to get a fairer slice of the cake from many employers is to lobby them and press them through collective action, through your trade union.
“It’s going to be awful over the next few months for the people on the lowest pay. In this day and age we shouldn’t be having to rely on charities at all but food banks are struggling to cope with the demand.
“The resilience for workers in Bristol, particularly those with housing costs is that much less. They’ve already got to the edge of what they can cope with and a lot of families are thinking, how on earth they are going to make ends meet.
“For a lot of younger workers, they have never experienced inflation in double figures, which is what we’re likely to see towards the latter end of this year. Somethings got to give; if the government doesn’t help we’re going to be in real crisis.
“Also employers have got to help and we’ve got to get a fairer share of company profits, more has got to be paid into wages. Trade unions have been growing for a number of years, I think there will be a rediscovery of trade unions at this time where we’re seeing the dreadful scenes of P&O across the country.
“Britain is not looking good in the way that it treats people. Workers are going to have to stand up for themselves and trade unions are a part of that,” added Nigel.
Matthew White, Reed’s regional managing director for the South West, said: “Like many other parts of the country, the South West has been heavily impacted by pandemic, as a result we’re seeing average salaries fall across the region. The South West has always had a distinct culture and its food and drink and creative industries are struggling to recover from the past two years.
"Salaries in the region’s engineering and manufacturing sector are lagging behind . Whilst salaries have been under pressure it is reassuring to see business in the South West working on innovative, futureproof technology and the economy recovering.
“It’s encouraging to see that some sectors such as business support are seeing salary growth and shows the potential for salary recovery in the region. Businesses in the South West are facing a fierce fight for talent and those looking to recruit should ensure that they are reviewing their package to stand out in a competitive market.”
