UK wages have had biggest fall in G20
Hywel Roberts, December 05, 2014
British employees have suffered the biggest real-term fall in wages of all workers within the G20, according to a report by the International Labour Organisation (ILO).
The Global Wage Report 2014/15 suggests real pay for employees within the UK was lower in 2013 than it was in 2007. Other high-profile developed economies in which this was the case include Greece, Ireland, Italy, Japan and Spain.
Between 2012 and 2013 the average global real pay increased by 2%. But in the UK it contracted slightly by 0.3%. Real-term wages in the UK have fallen by 6% since 2008. They have contracted every year and the biggest decrease was in 2011, when they ended 3.5% lower than at the end of 2010.
Asia has seen the most consistent wage growth from 2006 to 2013. It has been fairly consisted at around 6.5%, falling slightly to 6% last year.
ILO director-general Guy Rider said the trends of stagnating wages within developed nations "are a matter of concern".
"At the international level, if too many countries pursue wage moderation policies, the outcome is likely to be negative," he said.
"In the current environment, in which the global economy risks sliding back into a low-growth trap, higher wage growth would be desirable in those countries where wages in the past have lagged behind productivity growth."