CLWYD SOUTH AM KEN SKATES has warned that a triple dip recession in the next few months would be a disaster for households in North Wales.
As economists forecast a third recession in four years, the AM highlighted recently published figures which show the value of real wages in Wrexham has dropped by 16% since 2008 and by over 22% in Conwy.
In April 2008 the mean gross annual earnings for all employees resident in Wrexham according to the Annual Survey of Hours and Earnings (ASHE) was £22,391. The same figure for Wrexham employees for April 2012 was £22,125. A decrease of £266.
Between April 2008 and November 2012 inflation has been 14.8% which means that the drop in real value of average earnings in Wrexham in the same time has been minus 16% and in Conwy minus 22.5%.
The AM said a third recession could force many already hard-pressed families off a financial cliff.
CLWYD SOUTH AM KEN SKATES said:
“The real value of wages has dropped significantly for families living right across North Wales. In Wrexham for example, every worker and their family has seen the purchasing power of their money drop by 16% in just four years. In Conwy there has been a 22% drop.
“With many people forecasting a triple dip recession in the next few months, we need a swift change in policy before hard-pressed families in North Wales are forced off a financial cliff.
“Areas like Conwy and Wrexham have seen some of the biggest falls in real wages right across Wales. Not only are the cuts being pushed through by the UK Government not producing any economic growth, they are seriously jeopardising the ability of families and individuals to get by.
“A much greater proportion of low-paid workers income is spent immediately in the local economy than middle or high income families. So given we need more demand to stimulate growth, an economic policy that clearly shows low-paid wages falling so fast in real terms is highly counterproductive.
“We need to put an end to the voodoo economics being pursued by the Tory-Lib Dem coalition which is forcing so much misery on hard-working families.
“During the budget in March we need to see greater investment in infrastructure, a genuine stimulation of demand in the economy and more help for low-paid families in areas like North Wales.
“We need action now because families in North Wales are at breaking point and cannot be pushed any further.”