Haldane examines ‘puzzling pattern’ of weak wage growth
Average weekly wages are now lower than before the crisis, in real terms
Cyclical factors, structural changes and evolving power dynamics appear to explain the UK’s “lost decade” for pay, Bank of England chief economist Andy Haldane said today (October 10).
Since 2008, average weekly wages have risen about 2% per year, but inflation has averaged 2.2% a year, meaning real wages have fallen about 3.7% over the decade, Haldane told a conference in London.
Though the trend looks remarkably poor by historical standards, the underlying causes may not be that surprising
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