TUC: UK wages fell more than any other OECD country after financial crisis

27 Jul 16

Wages have fallen more sharply in the UK than in any other leading economy following the financial crisis, an analysis by the Trades Union Congress has found.

The research published today by the TUC revealed that between 2007-15, real wages in the UK fell by 10.4%, a drop equaled only by Greece.

By contrast, over the same period, wages grew in Poland by 23%, Germany by 14%, and in France by 11%. Across all Organisation for Economic Co-operation and Development member countries, wages grew by an average of 6.7%.

According to the analysis, the UK, Greece and Portugal were the only nations among the 29 OECD members examined that saw real wages fall.

Also, while the UK has increased its employment rates in the wake of the economic crisis, countries such as Germany, Hungary and Poland have increased employment rates significantly more.

TUC general secretary Frances O’Grady said: “Wages fell off the cliff during the financial crisis, and have barely begun to recover.

“As the Bank of England recently argued, the majority of UK households have endured a ‘lost decade of income’. People cannot afford another hit to their pay packets. Working people must not foot the bill for a Brexit downturn in the way they did for the bankers’ crash.”

She also advised government to invest in large infrastructure to create more jobs. “Other countries have shown that it is possible to increase employment and living standards at the same time.”

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