Workers in London have suffered a bigger wage squeeze since the recession than those almost anywhere else in the country , official figures have revealed . Full-time salaries in the capital have only risen by 6.9 per cent in six years since the recession , according to the Office for National Statistics . This means London workers have seen their salaries rise by just over 1 per cent a year since 2008 – way below the rate of inflation . Full-time salaries in the capital have only risen by 6.9 per cent in six years since the recession , according to the Office for National Statistics . Workers almost everywhere else in the country have seen their pay jump more quickly , with only the West Midlands and North West lagging behind . Across England as a whole , pay has jumped 7.6 per cent – with double digit wage growth in Wales , and Scotland . Pay in the North East has risen by 13.4 per cent since 2008 , 8.1 per cent in the South West , 7.5 per cent in the East and East Midlands . Despite seeing their pay squeezed more than elsewhere , salaries in the capital are still far higher than anywhere else in the country . The median full-time salary in London hit £34,069 last year – up from £32,813 in 2008 . In the North East , by contrast , the average worker took home £24,876 last year . The squeeze on wages in the capital has coincided with a hiring splurge and strong economic growth . Despite seeing their pay squeezed more than elsewhere , salaries in the capital are still far higher than anywhere else in the country . Wages in the North East ( left ) have grown almost twice as fast as those in London since the recession in 2008 . Tony Travers from the London School of Economics told the Financial Times said workers in the capital were more likely to be young , in the private sector and out of a union . He said this meat bosses found it easier to control wages while hiring more staff . Professor Travers said : 'If the story of the last five or six years has been one of flexibility in the economy , accommodating radical changes because of the recession , then you would expect that to show up in London most . 'London does have the biggest private sector economy of any region in the country , so it 's likely to be the least unionised , the most flexible . ' Paul Bivand , of the Centre for Economic and Social Inclusion , said there had been a boom in low-paid jobs in the capital since the recession . Over the past year pay has finally started to rise above of inflation . Average earnings increased by 2.1 per cent in the year to December , 0.3 per cent up on the previous month . At the same time , inflation fell to just 0.5 per cent in December . Unemployment , meanwhile , has continued to fall down to a near seven-year low – with the jobless total dipping by 97,000 in three months to December , taking the total number of people out of work to 1.86 million . This is down by almost half a million on a year ago . The number of people claiming jobseeker 's allowance has also been cut – falling by 38,600 in December to 823,000 , the 27th consecutive fall and the lowest since the summer of 2008 . The UK now has the third lowest unemployment rate in the European Union at 5.7 % , behind Austria – on 4.9 per cent – and Germany , where only 4.8 per cent are out of work , according to data from the Office for National Statistics .
Full-time salaries in the capital have only risen by just over 1 % since recession . This means wages in London have risen by 6.9 % a year since 2008 . Workers almost everywhere else in Britain have enjoyed better pay rises . Across England pay has jumped 7.6 % - and 13.4 % in the North East .