UK will see real decline in earnings
Real wages in the UK will fall by 1.2% in 2018, with nominal earnings growth of 1.5% outstripped by inflation of 2.7%, the OECD’s latest Economic Outlook says.
The decline means that the UK real wage performance in 2018 will be equal worst in the OECD, with Finland (UK is marginally worse on an unrounded basis). Mexico and Italy are the only other countries expected to experience declines.
Across all OECD countries, the average real wage increase is expected to be 1.1%.
TUC general secretary Frances O’Grady said: “Boosting wages has to be a top priority for whoever gets the keys to Downing Street.
“British workers still haven’t recovered from the last financial crisis. The last thing they can afford is another hit on their finances. Britain badly needs a pay rise.”
The OECD is the intergovernmental think tank for the market economy.