|June 6th, 2017||#1|
UK workers have had the worst wage performance in the OECD except Greece
The chart that shows UK workers have had the worst wage performance in the OECD except Greece
The LSE's Centre for Economic Performance shows that average wages for British workers, when adjusted for inflation, fell by more than 5 per cent between 2007 and 2015
The UK has suffered the biggest drop in average real wages of any OECD country except depression-wracked Greece, according to a pre-general election analysis published by the London School of Economics.
The LSE's Centre for Economic Performance (CEP) uses OECD data to show that average wages for British workers, when adjusted for inflation, fell by more than 5 per cent between 2007 and 2015,
The only member of the OECD group of nations that saw a worse performance was Greece, which has seen its economy shrink by around a quarter since 2008, thanks to massive austerity and the prospect of the country crashing out of the eurozone.
Second worst in the OECD
Real wages in the UK began to grow again in 2015 and 2016 as inflation fell to below zero.
But the spike in consumer prices in recent months, owing to the the slump in the value of sterling in the wake of last June's Brexit vote, means that real wages in the UK are now falling again.
Nominal average wage increases remain well below the pre-financial crisis rates of around 4 per cent a year, with the latest figures from the Office for National Statistics showing total annual pay growth of just 2.4 per cent.
Most economists suspect that companies are unlikely to offer wage settlements higher than absolutely necessary to retain staff when faced with the deep uncertainty over future trade created by Brexit.
Europe is the destination for just under half of the UK's exports.
The Conservatives and Labour have both pledged to increase the minimum wage - with Labour planning to take it up to £10 an hour for over 18 year olds - but the CEP report's authors, Rui Costa and Stephen Machin, point out that this would only raise wages for lower paid workers, rather than those on average wages.
"It is not straightforward to see how pro
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read full article at source: http://www.independent.co.uk/news/bu...-a7773246.html