Newspaper article The Journal (Newcastle, England)

Changing Workplace Affects Pay, New Study

Newspaper article The Journal (Newcastle, England)

Changing Workplace Affects Pay, New Study

Article excerpt

WAGES have been "dragged down" because of changing trends in the workforce, including younger and less experienced employees, according to a new study.

The Resolution Foundation think tank said a downward shift in the mix of occupations towards lowerpaying jobs has prevented 2014 from being the year of the pay rise.

Changes which have led to reduced earnings growth include fewer managerial jobs, rising youth employment and increasing numbers of people starting a job.

Matthew Whittaker, chief economist at the Resolution Foundation, said: "Many people predicted that 2014 would be the year of the pay rise. In fact, earnings growth reached a record low earlier this year and is not set to overtake inflation until 2015. This stubbornness of pay falls is a worry to all of us.

"We are beginning to get a clearer picture of what underpins these terrible wage figures. Some factors are more benign while others are a cause for concern. The speed-up in the entry of younger and less experienced employees into the workforce, who are invariably lower paid than average, has been an important drag on wages. …

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