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Commenting on today’s (Tuesday) labour market figures, which show real wages falling by 1.7% on the year, with public sector pay falling even faster at 3.1%, TUC General Secretary Paul Nowak said:

“The government must stop scapegoating workers for its failures. Wages are not driving inflation – they are not even keeping up with it. 

“In the public sector and lower-paid private sector industries, pay is even further behind.  

“The Bank of England’s own data shows that nominal pay gains are being driven by the very highest earners. 

“Working families have suffered 15 years of falling living standards. Ministers shouldn’t be forcing households to become even poorer. 

“We need a credible economic plan for boosting growth, jobs and pay. 

“Setting the UK on course for another damaging recession would be reckless.” 

TUC analysis published on Monday revealed that UK workers will miss out on £3,600 this year in pay as result of their wages not keeping pace with the OECD average. 

Economic inactivity 

Commenting on ongoing high levels of economic inactivity amongst workers who are unable to work because of long-term sickness, Paul added: 

“Too many workers are still being forced out of the labour market because of ill-health. 

“Instead of lecturing people to ‘get off the golf course’, ministers should be investing in our public sector workforce so that health and care services can improve.” 

Editors note

- Labour market statistics: This month’s ONS labour market statistics are available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/july2023  
- Bank of England minutes: The latest MPC minutes state that: “The pick-up in annual pay growth since the time of the May report had been concentrated in higher-paying sectors such as financial and business services. Pay growth in lower-paid sectors like wholesaling, retailing, hotels and restaurants had been broadly flat.” https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2023/june-2023

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