Real wages to ‘shrink’ over the next two years, says TUC
Real wages are set to shrink by 6.2% over the next two years according to the research
Workers in the UK are set for the worst “real wage squeeze” among leading economic nations, according to a new report.
The TUC said its research suggested real wages in the UK are forecast to shrink by 6.2%, or £1,750, over the next two years, the highest figure of any G7 economy.
Pay growth will bounce back faster in other countries, with UK workers suffering the longest and harshest pay squeeze in modern history, said the union organisation.
A previous analysis by the TUC indicated that workers lost nearly £20,000 in real earnings between 2008 and 2021 as a result of pay not keeping pace with inflation.
Years of wage stagnation have left families “brutally exposed” to Britain’s cost-of-living crisis, said its report.
The TUC said the top priority for the next Prime Minister should be to get wages rising across the economy, adding that Boris Johnson and former Chancellor Rishi Sunak committed on 20 separate occasions over the past year to a create a “high-wage economy”.
TUC General Secretary Frances O’Grady said: “Making ends meet shouldn’t be a battle, but UK workers are suffering the worst pay squeeze in the G7 and the longest in modern history.
“Having repeatedly promised a high-wage economy, the Conservatives have consigned Britain to the bottom of the league for pay growth.
“Years of standstill wages have left households brutally exposed to this cost-of-living crisis.
“The number one priority for Tory leadership candidates should be to get pay rising across the economy.
“This is the best way to give people long-term financial security and to stop families from lurching from crisis to crisis.”