GDP growth of any kind is no longer leading to higher real wages
Today's GDP estimates from the ONS are again disappointing, and fall far short of what would be expected from a healthy economy.
27 April 2018
Reacting to today’s ONS stats on GDP, Alfie Stirling, Head of Economics at the New Economics Foundation, said:
“Today’s GDP estimates from the Office for National Statistics are again disappointing, and fall far short of what would be expected from a healthy economy.
“But worse still is that GDP growth of any kind is no longer leading to higher real wages. Since 2010, GDP growth has become ‘decoupled’ from growth in pay with the latest estimates showing that total pay in February was the lowest monthly level seen for 2 years.
“This grim phenomenon is unique, both to the community of major economies and to the UK’s own historical record. It points to an economic model that is no longer working for people.”
Topics Macroeconomics
