British Wage Cuts on a Par With Greece

WAGES

The Trades Union Congress (TUC) study has found that workers in Britain have suffered the biggest drop in real wages since the financial crisis – more than any other leading economy besides Greece. Real earnings of British employees declined by 10.4 percent between 2007 and 2015 said the study.

In a list for 29 OECD countries, Portugal was the only other country on the list where real wages fell. TUC General Secretary Frances O’Grady said that British households were already strained before Brexit. “Wages fell off the cliff after 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’,” she said. “People cannot afford another hit to their paypackets. Working people must not foot the bill for Brexit downturn in the way they did for the bankers’ crash.”

Real hourly wages in England were more than 25 percent below where they would have been if wage growth had continued at the rate observed from 2000 until 2007.