In the News

UK workers suffer biggest hit to real wages since records began

Geoff Riley

17th August 2022

For the majority of workers in the UK, wages are not keeping pace with prices.

This short video from Sky News is a handy clip to use when teaching about the difference between nominal and real wages.

Average real wages — which account for inflation — fell by 3% between April and June 2022 compared with the same period last year

But it is not simply a case of businesses being able to offer their employees a wage rise to compensate for the rising cost of living.

Many small and medium-sized enterprises are struggling to achieve an operating profit at a time of rising input costs.

These are indeed tough times for the economy. Stagflation has returned.

Here is the view from the head of the UK Trades Union Congress

You can find a video of the extended discussion here

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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