Britain’s households suffered a squeeze on wages in the past eight years only matched in the advanced world by Greece, according to a TUC analysis.
Between 2007 and 2015 wages fell by 10.4 per cent after adjusting for inflation. It was the sharpest decline of all 35 members of the Organisation for Economic Co-operation and Development with the exception of Greece. Across the OECD, real wages increased by 6.7 per cent on average.
British households endured the most severe decline in livings standards in more than a century after the financial crisis and many economists believe they are on the verge of another squeeze following the vote to leave the EU.
“Wages fell off the cliff after the financial crisis, and have barely begun to recover,” Frances O’Grady, the TUC general secretary, said. “People cannot afford another hit to their pay packets. Working people must not foot the bill for a Brexit downturn in the way they did for the bankers’ crash.”
In Germany real wages grew by 13.9 per cent and in France by 10.5 per cent. Portugal was the only other OECD member apart from Greece and the UK to suffer a fall over the period.