Denton and Reddish MP, Andrew Gwynne, has slammed the Government as official figures reveal that the rate of pay growth for British workers has fallen to the lowest level in six months.
The Office for National Statistics said average weekly earnings rose by just over 2% on the year in the three months to May, slowing down from the previous three months when they grew by 2.6%. The share of people in the UK without a job is now smaller than it was before the financial crisis, but average real wages contracted by an average annual rate of 0.3%
On top of this the OECD confirmed that the UK had the weakest wage growth of any G7 country over the past decade with wage stagnation one of the worse in the developed world. Across developed economies (34 OECD countries), only Greece and Mexico have performed worse in terms of wages. The OECD also confirmed that the lack of wage growth in 2017 in the UK compares with a 1% real wage expansion in Germany and 1.2% in France.
The rise in inflation since the Brexit referendum has also damped real wage growth, even as the UK jobs market continues to tighten with the Office for Budget Responsibility forecasting nominal wages to remain weak in the near future.
Andrew Gwynne said:
“These figures confirm what we are all aware of, principally that millions of workers are struggling to get by. Over the period of this Tory Government wages have stagnated, public sector workers have been ignored and investment has plummeted.
“While the Government fudges yet another piece of public policy, the public at large have to pick up the pieces.”