In it for the money? Pay slump hits jobs

You might not often hear people expressing great pity for estate agents or traffic wardens – but perhaps you should.

That’s because they are among the people whose wages have taken some of the most significant real-terms cuts over the last 10 years.

While UK pay growth recently accelerated to its strongest rate since July 2008, for estate agents, in real terms, their salaries are a third lower than they were back then.

Whereas their average pay rate of £34,787 in 2008 would, left to inflation alone, be worth £45,571 in 2019, in reality the average wage of an estate agent is £30,411 – a third of that total.

“The real issue is a squeeze on commission rates, added to the dramatic increase in legislation and compliance costs as well as the general increase in costs,” says Roger Parry, senior partner with estate agents Roger Parry & Partners.

“Nationally there has been a reduction in house sales, due to economic uncertainty and the associated costs of moving, including the increase in stamp duty.

“As a result more people are extending their houses rather than moving.

“We are fortunate in Roger Parry & Partners that we have a diverse business with different income streams including planning, land agents and estate agents all working together.”

At the other end of the spectrum, air traffic controllers, taxi drivers and farmers are among the biggest winners over the last decade who have seen their wages grow the most, the analysis of ONS data by income-streaming app Wagestream shows.

Farmers’ real-terms pay is up by 6.1 per cent, and taxi drivers’ by 50.1 per cent to £26,625, the figures suggest.

But Oliver Cartwright, spokesman for the National Farmers’ Union, disputes the figures.

Volatile

He says figures released in May by Defra’s Total Income from Farming report showed that total farming profitability fell by 17 per cent from £5.63 billion in 2017 to £4.7 billion in 2018.

“These figures are a stark reminder of the impact volatile weather and other market pressures can have on British farming and demonstrates just how exposed agriculture and horticulture is to increasingly volatile weather,” he says.

“From the Beast from the East to the summer drought in 2018, farmers saw reduced crop yields, tightened feed availability and increased input costs.

“When the Agriculture Bill goes through Parliament, it is crucial it is strengthened to include robust measures that can give farmers the tools to deal with volatility.

“Food and farming contributes £122 billion to the economy, and this figure has risen steadily over the years; this clearly demonstrates the strategic importance of farm businesses to the country and the farmers and growers that provide food for the nation, all while caring for our countryside. This must be recognised by government.”

The figures also suggest that nurses’ salaries are 16.9 per cent higher than 11 years ago, but their 2008 salary is worth £36,997 in 2018 money, meaning wages have really fallen by 10.7 per cent.

Police officers above the rank of inspector saw wages rise 11.4 per cent, which was a real-terms fall of 15 per cent given their 2008 salary should be worth £71,683 by now.

And secondary school teachers’ pay rose 7.3 per cent but fell 18 per cent when adjusted for inflation.

More positively, however, the treasury recently announced a £2 billion pay rise for public sector workers, with soldiers getting a 2.9 per cent boost, while teachers and other school staff will get 2.75 per cent, police officers, dentists and consultants 2.5 per cent and senior civil servants two per cent.

Peter Briffett, chief executive of Wagestream, said: “It is great news that pay growth is the highest it has been in 10 years, but many workers have seen their salaries stagnate and even fall dramatically over that time.

“Most UK workers are still in a worse position than they were in 2008, with very few people seeing a real-terms pay increase over that period.

“Some of the UK’s lowest-paid people have been hit by falling wages, resulting in their disposable income being cut. And when family budgets are so tight, just one unexpected bill or expense like a car breakdown can push people towards payday lenders or loan sharks.”