By Vivienne Russell | 4 June 2011
People in the UK are wealthier and better educated than they were at the time of the Silver Jubilee in 1977, according to the Institute for Fiscal Studies.
In an analysis, published today, the IFS also drew some parallels between today and the late 1970s. Economic growth is weak, household incomes are falling and fiscal austerity has taken hold.
But despite these similarities, incomes today are twice as high and people spend much more on luxuries than necessities.
There has been an eightfold increase in the proportion of working-age people with university degrees. In terms of jobs, the proportion of people employed in manufacturing has fallen from 25% to 10%, offset by a rise in the service sector, including public services, banking and finance, from less than a third in 1977 to over half now.
In 1977, only 56% of households had a car compared with 75% today, and the proportion running two cars has increased from 11% to 30%.
More women aged between 25 and 54 are in paid employment today than in the 1970s. In 1977, fewer than 60% were working, compared with 74% in 2011.
IFS director Paul Johnson said it was easy to forget how much better off people are.
‘Average incomes are twice as high now. We are much better educated and we have access to far more in the way of consumer durables. It is important sometimes to step back and appreciate just how much things tend to change for the better over time. Annual economic growth of a couple of per cent a year transforms lives over a generation.’
But the IFS also highlighted how much inequality had increased. After tax, the richest 1% of households have 9% of all income compared with 3% in 1977. And for men aged between 55 and 64, employment rates have dropped from 81% to 63% and reliance on disability benefits has increased.
