Think tank Resolution Foundation reports temporary break in UK productivity-wage link, leading to real wage growth without inflation.

Think tank Resolution Foundation reports a temporary break in the link between productivity and wage growth in the UK. This has allowed real wages to rise, without increasing inflationary pressure. Despite productivity falling by 0.6% during the same period, the UK has seen a pay recovery with real average weekly regular earnings growing by 2.1% in the year to February. The think tank, however, warns that this "unproductive wage growth" will not last.

May 12, 2024
5 Articles