Hello beautiful,
Despite wages in the United Kingdom growing by approximately 6% in March 2024, real-term wage growth adjusted for inflation tells a different story, with only a 2% increase. The inclusion of bonus pay paints a similar picture, showing a nominal increase of 5.7% but a real-term rise of just 1.7%. This data highlights the ongoing challenge, as inflation continues to outpace wages, marking nearly two years where the cost of living has risen faster than earnings.
Between March and June 2020, wage growth plummeted due to the economic shock from the COVID-19 pandemic. While there was a spike in growth rates in early 2021, these were partially distorted due to the pandemic's impact. With UK inflation peaking at an alarming 11.1% in October 2022 and remaining high at 4 percent by the end of 2023, real wages have seen the steepest decline in a generation, deeply affecting living standards.
📊 The Economic Reality:
In 2023, the median average annual earnings for full-time workers in the UK was £34,963, with significant regional disparities. London topped the chart with average salaries significantly higher than the rest of the country, at £44,370. This contrast highlights the uneven economic landscape across regions, with the North East featuring the lowest average salary at £31,200.
🔍 Gender Pay Gap Insights:
Moreover, the gender pay gap remains a significant issue. In 2023, hourly earnings revealed a gender pay gap of 14.3% for all workers, narrowing down to 7.7% for full-time workers. While there has been progress since 1997 when the gap was a stark 27.5%, the journey towards closing it entirely is still ongoing.
⚖️ Inequality in the UK - A Deeper Look:
The United Kingdom remains one of the most unequal countries in Europe. In 2022, the gender pay gap for full-time workers stood at 14.9% percent, indicating that women earned significantly less per hour than men. This gap varies by age, widening significantly as workers reach their 50s. Moreover, racial disparities persist in the workforce, with the ethnicity pay gap in England and Wales recorded at 2.3% percent in 2019, showing that white British individuals typically earn more than ethnic minorities. Although there has been some progress, with the gap decreasing from 8.4% in 2014, significant disparities continue, particularly for Pakistani workers who earned 15.5% less than their white British counterparts.
The wealth distribution has also seen fluctuating trends over the decades. While the 20th century witnessed a significant redistribution of wealth, this progress has stalled in recent times. In 2023, the top 1% of earners took home an average monthly salary that was more than triple that of the highest 10%. Amidst this economic backdrop, the ongoing cost of living crisis has exacerbated the struggles for the most vulnerable. In 2022, approximately 14.4 million people, including 4.2 million children, were living in poverty in the UK. The surge in energy and food prices has hit low-income families the hardest, with many increasingly dependent on food banks to make ends meet.
💬 Why Negotiation Matters Now More Than Ever:
This backdrop sets the stage for why mastering negotiation is crucial. It’s not just about striving for fair pay; it’s about ensuring your earnings reflect your true value in a challenging economic environment. Don’t let a 15-minute conversation deter you from pursuing a raise or better compensation. Remember, companies act in their best interest, it’s time you do the same.
🌱 Ready to Transform Your Approach?
If you’re onboard but seeking guidance, join me in Mastering the Art of Negotiation. Learn everything you need to approach your salary discussions with confidence, backed by real data and an understanding of the market trends.
Challenge the status quo. Advocate for your worth. In doing so, you don’t merely elevate your own life; you also lay down a marker for fairness and equality in the workplace. But why stop there? By standing firm in your value and fighting for your worth, you spark broader change, driving us toward the collective success that a feminist economy aims for.
Remember, when you challenge the status quo, you're not just negotiating for a salary; you're advocating for a seismic shift in how value is recognised and rewarded. Let’s not just aim for equal footing; let’s reshape the ground we all walk on.
💖Dream big, awaken your wealth, and remember, I believe in you 💖