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TUC – UK set for “worst real wage squeeze” in the G7
UK workers are set for the “worst real wage squeeze” among G7 nations, new TUC analysis of OECD figures has revealed today (Friday).
The analysis shows that real wages in the UK are forecast to shrink by 6.2% (-£1,750) over the next two years – the tightest contraction in pay of any G7 economy.
The comparison of international pay trends also highlights how real wage growth will bounce back much faster in other competitor nations.
In Italy – the second worst-hit economy – real wages are set to be down by just 0.7% in 2023.
But in the UK wages are forecast to fall by 3.0% in 2023.
Worst wage squeeze in modern history
The TUC says UK workers are suffering the longest and harshest pay squeeze in modern history.
Previous analysis published by the union body reveals that working people lost nearly £20,000 in real earnings between 2008 and 2021 as a result of pay not keeping pace with inflation.
And more than a decade on from the financial crisis UK workers are still earning £75 a month less – in real terms – than in 2008.
The TUC says years of wage stagnation have left families “brutally exposed” to Britain’s cost of living crisis.
Get wages rising
The TUC said “the top priority” for the next Prime Minister should be to get wages rising across the economy.
The union body warned that without action to boost pay packets families will keep “lurching from crisis to crisis.”
The TUC highlighted how Boris Johnson and Rishi Sunak committed on 20 separate occasions to a create a “high-wage economy” over the past year.
Click here for the full press release
