Real wages could have fallen 20% further than first thought according to a new study which includes Britain’s 4.5 million self-employed in pay figures.
The study, conducted by leading thinktank, the Resolution Foundation, found that a fall in real wages by 10% since 2008 would increase to more than 12% if a 27% fall in self-employed incomes is taken into account.
The thinktank are now urging the Bank of England to rethink their decision to raise interests rates, saying that the data is currently skewed to make the UK economy appear more healthy than it actually is.
Officials from the Bank of of England monetary policy committee are now said to be concerned about the official figures.
Laura Gardiner, senior analyst at the Resolution Foundation, told The Guardian:
“The official figures give a picture that’s incomplete at best and sometimes misleading. What we know about earnings is central to our understanding of the recovery and the timing of interest rate rises so it’s crucial that we equip ourselves with the best possible wage measure.”
Over 700,000 workers have declared themselves as self-employed since the beginning of the recession in 2008, meaning 4.5 million Brits now work for themselves.
In comparison, only 260,000 workers have joined the employed workforce.
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