The average UK wage won’t double until the end of this century, claims a new study.
The research by think tank Resolution Foundation, funded by the Nuffield Foundation, looked into the lack of growth in British pay packets despite unemployment rates hitting a 40-year low. Prior to the financial crash, the average time for wages to double in value was 29 years.
It’s now looking more like 81 years.
The report concluded that poor productivity was primarily to blame, combined with a prevalence of precarious work such as zero-hour contracts. Resolution Foundation senior economic analyst Stephen Clarke said: “Britain is living through a painful pay puzzle, where earnings growth remains rooted below 3 per cent. Understanding the real reasons why pay is performing so badly is one of the biggest challenges we face.”
New Nuffield-funded research from the @resfoundation highlights the UK’s struggle to boost wages since the credit crunch. #paycrisishttps://t.co/gE0YHfTj3u
— Nuffield Foundation (@NuffieldFound) October 9, 2018
The think tank said that underemployment and insecure work rates must also be included “alongside unemployment when measuring labour market slack, to recognise that many workers want to take on more hours or find more secure work”.