UK workers see 10.4 per cent wage drop – the biggest in OECD besides Greece

Real wages from 2007 to 2015 fell despite more jobs, says TUC

 

Workers in the UK have seen the biggest fall in real wages of any leading economy, with a pay drop matched only by Greece.

Data parsed by the Trades Union Congress (TUC) shows how wages fell 10.4 per cent between 2007 and 2015 – the biggest drop of any OECD country.

Meanwhile, wages grew by 23 per cent in Poland, 13.9 per cent in Germany and 10.5 per cent in France, with an OECD average rise of 6.7 per cent.

Only three OECD countries saw real wages fall: Greece, Portugal – economies ravaged by the financial crisis – and the United Kingdom.

The government has hailed growing employment rates since 2007-8, but today’s analysis shows this has not meant higher real wages for UK workers.

Germany, Hungary and Poland have boosted employment even more, and seen a rise in real wages at the same time.

Poverty has also remained steady in the UK, with two thirds of children in poverty living in working households, according to the IFS.

Frances O’Grady, TUC General Secretary, said:

‘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 added:

‘This analysis shows why the government needs to invest in large infrastructure projects to create more decent, well-paid jobs.

Other countries have shown that it is possible to increase employment and living standards at the same time.’

Here’s the full data:

Real Wage Growth TUC

See: Theresa May brags about record employment — but what are those jobs really worth?

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