UK wage growth predicted to fall in 2018

UK wage growth

UK employees will be set for a financial blow with real wages set to fall again in 2018, according to a Trades Union Congress (TUC) report published 29th December 2017.

The TUC’s analysis of the Organisation for Economic Co-operation and Development’s (OECD) forecast reveals that pay growth in the UK is at its lowest compared to the other 31 countries that are members of the intergovernmental economic organisation.

The OECD has ranked the UK as number 32 in its list with an estimated -0.7% pay growth, way below the European pay growth average of 0.6%. This is thought to be due to the recent rise in inflation and the weakness of the British pound since Brexit.

Both Italy and Spain are also thought to see negative growth in salaries, whereas Hungary has a projected growth of 4.9% and Latvia 4.1%.

Frances O’Grady, general secretary TUC, said: “Real wages are still lower than they were when the financial crisis hit in 2008. And 2018 is set to be bleaker still.

“It looks like UK wages will fall the furthest of all advanced economies.

“On current projections, average pay won’t recover until 2025: a full 17 years after the pay squeeze began.

“So in 2018, we’ll keep campaigning for an economy that can deliver a pay rise for everyone. We’ll push to stop the worst exploitation, like zero-hours contracts and the pay penalty for agency workers. We’ll argue for more and better jobs, in every region and nation of the UK. And on 12 May we’ll march together to demand a new deal for working people.”