08 Dec 2014
According to the International Labour Organisation (ILO), in the three years to 2013 real wages in the UK showed a bigger drop than other G20 economies.
Adjusted for inflation, UK wages suffered their biggest drop of 3.5% between 2010 and 2011. Other reports show that most Eurozone economies believed to have been hit hardest by recession still outperformed UK in terms of real wages, with Greece faring the worst. Office for National Statistics (ONS) data recently showed that wages fell by 1.6% in 2014 compared to 2013.
Shadow Chief Secretary of the Treasury, Chris Leslie, said: ‘On average working people are now £1600 a year worse off since 2010’.
ILO senior economist, Patrick Belser, said: ‘In the UK in 2008 there was some positive growth of real wages whereas some other countries had stagnant or declining wages – such as Japan. What you see subsequently is a continuous fall in wages to 2013. We expect wages to be at best flat this year, and they will most likely decline’.
He added: ‘At the international level, if too many countries pursue wage moderation policies, the outcome is likely to be negative’.