Britain’s 17-year real wage squeeze will be the worst in modern history, warns TUC

• TUC warns of ‘slowest wages recovery’ in 200 years
• Average worker will have lost £18,500 by 2025 TUC estimates
• Tens of thousands to march in London for ‘new deal’ for working people

UK workers are suffering the longest squeeze on real wages in modern history, new TUC analysis reveals today (Saturday).

A decade on from the financial crisis real wages are still worth £24 a week less than in 2008.  And they are not forecast to return to their pre-crash level until 2025.  

By this point real wages will have been in decline for 17 years.

Slowest wages recovery in two centuries

The current period of wage stagnation is the worst for two centuries. Not since the beginning of the 18^th century (when it took 24 years), has it taken so long for real wages to recover from a slump.

The TUC compared the current wages squeeze with every major earnings crisis over the past 200 years. Even during the Great Depression era (10 years) and revival from the Second World War (7 years) real wages recovered more quickly.  

The TUC estimates that as a result of pay not keeping pace with the cost of living, by 2025 the average worker will have lost out on around £18,500 in real earnings.

This will be the biggest relative real wage loss since Lord Nelson roamed the seas, dwarfing anything seen over the last century.

Real wages increased by 27% in the decade before the financial crisis (1998-2008). However, in the decade since (2008-18) they have fallen by 4%.

Thousands to march in London

The analysis is published as tens of thousands of people prepare to march through London as part of the TUC’s ‘New Deal for Working People’.

Labour Leader Jeremy Corbyn will address a rally at Hyde Park. And there will be speeches by union leaders and frontline workers.

TUC General Secretary Frances O’Grady will tell marchers today:

“UK workers are suffering the worst pay squeeze for two centuries. It’s taking wages longer to recover from this crash than from the great depression and second world war.

“This means families are struggling to get by. Millions of kids are growing up in poverty despite having parents in work. Mums and dads are skipping meals and turning to dodgy lenders to make ends meet.

“That’s why tens of thousands are marching today for a new deal for working people. We need great jobs in every region and nation of the UK, and higher wages for all workers, not just the bosses.”