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Automation a factor behind falling real wages for millions

Geoff Riley

19th October 2014

This article from the Sunday Observer http://www.theguardian.com/business/2014/oct/18/ec... is really useful for understanding some of the longer term dynamics in the labour market that are affecting the pattern of demand for jobs of different skills.

Mid-range skilled jobs are in decline and having a depressive effect on real wages for millions of people in lower-skilled occupations. In contrast, real pay for those with higher educational qualifications and skills continue to rise leading to growing inequality. Which jobs are next in line to be threatened by the relentless march of new technologies and automation?

The Institute for Policy Research has claimed that the average British worker is almost £5,000 a year worse off as wages have failed to keep pace with inflation since 2008.

More reading:

Financial Times: Lost decade of wage growth beckons for millions: http://www.ft.com/cms/s/0/11c50f2a-472c-11e4-8c50-00144feab7de.html

Video

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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