By Daniel Hunter
The wages of the UK's young workers have been hit hardest by the squeeze on pay following the financial crisis, according to the Institute of Fiscal Studies.
The think tank said that young workers are taking home less pay in real-terms than at the start of Tony Blair's second term as Prime Minister in 2001.
“Between 2008 and 2014, there is a clear pattern across the age spectrum, with larger falls in earnings at younger ages,” the report said.
Rachel Reeves, the shadow work and pensions secretary, said: “This report shows David Cameron has overseen falling wages and rising insecurity in the labour market. Only Labour has a plan to tackle low pay and to earn our way to rising living standards for all.”
But the government pointed towards recent employment and wage figures which show pay rising faster than inflation, indicating growing real-term wages.
22-29 year olds suffered the worst squeeze on pay between 2009 and 2011. The IFS said wages were down 10.6% for the age group during that time, compared to just under 7% for older age groups.
In 2014, pay returned to pre-crisis levels for the over 60s, but still remain 9% lower for young workers.
The IFS study also showed that women were largely better protected against the pay squeeze than men. This is because women are more likely to work in the public sector, where wages fell much slower, the IFS said.
Women's wages between 2008 and 2014 fell by 2.5% in real-terms, compared with 7.3% for men.
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