Real wage growth is missing in the UK

Workers in the UK have suffered a bigger fall in real wages (adjusted for inflation) than any other workforce in the world’s top 10 developed economies, according to the TUC’s latest report on the global economic race.

The study shows that between 2007 and 2011 real wages fell by 4.5% in the UK, more than the fall seen in Italy (2.7%) and Japan (0.7%).

In contrast, wages in Australia and Canada rose by 6.9% and 5.4% respectively.

During 2011 alone, real wages in the UK plummeted at nearly twice the rate of Spain — the next worst-performing economy that year.

The figures highlight the extent to which the recession and subsequent economic stagnation has squeezed the incomes of ordinary workers, says the TUC.

It says the government’s austerity programme has made the squeeze on living standards even tighter by cutting vital tax credits and welfare support for low- and middle-income families.

TUC general secretary Frances O’Grady said: “While most countries have suffered periods of negative wage growth, no one has witnessed such a marked decline as the UK.

“This government’s blind obedience to self-defeating austerity has ensured that we are leading the way when it comes to the squeeze on living standards.

“Unless we get stronger economic growth with rising real wages consumer spending will remain weak and the economy will continue to flat-line.”

www.tuc.org.uk/economy/tuc-21993-f0.cfm