World economic levels 2007 – 2015 [INFOGRAPHIC]
The UK citizens have gone back to the pre-crisis levels that they enjoyed before. The Office of National Statistics has said that most households have benefited from an increased national average salary, which has caused household disposable income improvement. There is also a rise in the employment levels and the overall economy has started to stabilize.
Unfortunately, the issue of median household income inequality seems to be affecting the region since there are workers who are worse off than they before the recession. On the contrary, those who have retired seem to be living well and were somewhat doing well during economic downturn.
The figures and statistics show that the living standards in the UK have actually gone higher than where they were before the depression. This is attributable to the economic growth and the effort to record the lowest unemployment rates in most regions.
According to the data that was provided by ONS, inequality seems to have maintained consistency in the last 12 months. However, it is much lower than it was before the recession. Most analysts say that the tax credits have played a significant role in trying to achieve equality in the household income 2016.
The chancellor has proposed some changes in the tax credits and this did not go very well with most people. The Institute for Fiscal Studies warned that if the changes were implemented, there would be a regressive impact on the economy. This might end up causing retrogression in the milestones that have been achieved in the last 8 years.
The ONS stats show that a median UK citizen took home £25,600, before tax. When factoring in the inflation issues and the various changes in households, this is higher than what was recorded in 2012/13 and slightly more than the amount recorded at the peak of the pre recession of £25,400.
The continuous growth of the wages and rise in the employment rate has contributed to the living standards shooting back to the pre-crisis levels in the UK. However, it is notable that the wages have increased, but the disposable income is still lower than it was before the crisis. This is what has stagnated investments and savings accounts being active in the UK.
The economic cycle forecast by the ONS shows that the disposable income may take some time before it can get to the pre recession levels. However, the economic growth is impressive and the infographic below expounds on the pathway to full economic recovery.
World economic levels – Infographic via eReviews