UK Work­ers Feel Frus­trated By Flatlin­ing Pay

The HR Digest - - Drift -

Work­ers in the UK feel frus­trated be­cause their pay has been flat­lined for a decade. Low pay has con­trib­uted to low in­ter­est rates, which will re­main low for a long time. No mat­ter how ef­fi­cient work­ers and em­ploy­ers are, flatlin­ing is still one of the biggest causes of lack of pay growth.

Cur­rently, only be­tween 1% and 5% of firms are “high-in­no­va­tion” busi­nesses who have em­braced ar­ti­fi­cial in­tel­li­gence, and are on the road to pro­duc­tiv­ity. The biggest cause of slug­gish­ness in pro­duc­tiv­ity and pay is that firms keep tak­ing the low-pro­duc­tiv­ity road. Firms are un­able to bench­mark them­selves against other firms to see whether they’re mak­ing any tan­gi­ble progress.

Pay growth has been slug­gish over the past cou­ple of years. This has taken the UK gov­ern­ment by sur­prise, in spite of the ev­i­dent rise in UK em­ploy­ment and jobs growth. More­over, lack of pay growth is one key fac­tor that has con­trib­uted to in­ter­est rates in the UK at their cur­rent low lev­els.

Anti-poverty cam­paigns are us­ing the bleak fig­ures to show how work­ers with low skills in cer­tain parts of the coun­try are among those worst hit by flat­lined pay and bet­ter em­ploy­ment op­por­tu­ni­ties. The ris­ing cost of liv­ing has also hit work­ers on lower in­comes harder than any other groups. Low to mid­dle wage earn­ers have been fac­ing in­fla­tion that is up to once per­cent greater than for higher earn­ers for the past decade.

The phe­nom­e­non pre­dates re­ces­sion and is in­erad­i­ca­bly wide­spread. It has been oc­cur­ring con­sis­tently for the last two decades and is ob­served for lowwage earn­ers across the age spec­trum.

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