Smaller factor the day you will need to wait until they were nearly 100 years to find out the average wage in Britain double from current levels, according to a study that highlights the United Kingdom struggle to improve wages since the credit crisis.
The Resolution Foundation said the failure to improve the recent levels of payment growth to condemn Britain to wait until 2099 by current average pay package doubled after inflation for much longer than was required before the financial crisis to a two-fold increase in real wages.
The average pay package previously doubled every 29 years, after inflation, according to the thinktank analysis of recent earnings growth levels recorded in the years between the end of the Second World War at the turn of the Millennium.
Figures from the office for National Statistics in July, other, show the average total pay including bonuses stood at £491 per week which is about £31 less than the pre-downturn peak of £ 522 per week.
On current trends in real wages have grown by 0.7% per year since 2014, the scenario specified by the Resolution Foundation means that even children born today are unlikely to see the average pay packet in Britain is double even after retirement, with devastating consequences on the standard of living.
Economists blamed the weak levels of productivity growth in the decade since the accident for the failure to enhance the customer pay because the measure of economic output per hour of work to help businesses achieve greater profits with fewer resources to enable them to raise the wages of workers.
The report said the weak productivity growth was the main reason behind the meager improvements in the customer payment experienced in recent years, accounting for nearly half of the slowdown. Productivity grew by only 0.8% annually since 2014, a decrease of 2% in the early 2000s.
However, it also blamed an increase in precarious employment since the financial crisis, such as the functions that are governed by zero-hours contracts, where workers dissatisfied with their current roles who were looking for more work.
Low levels of unemployment historically helped to increase customer interaction and demand higher wages and improved working conditions as companies are forced to pay more money to attract scarce workers.
Wage growth in Britain gradually began to accelerate in recent months as the unemployment rate fell to the lowest level since the mid-1970s. But it is still less than the 4% average growth rate recorded before the financial crisis and only just above the Bank of England’s 2% inflation target.
The Resolution Foundation said there are 700,000 people who would like to do more than an hour and who are actively looking for work of more than 500,000 before the crisis.