According to an analysis by the TUC, the UK has ranked behind countries such as Italy, Greece and Hungary for wage growth in 2018.
Britain is set to have the worst wage growth among wealthy nations in 2018 according to the study of OECD figures by the TUC. Employees are expected to see wage growth decrease by 0.7 percent over the next year.
“Real wages are still lower than they were when the financial crisis hit in 2008. And 2018 is set to be bleaker still,” said general secretary Frances O’Grady.
Only the UK, Spain and Italy are expected to see a decrease in wage growth. Hungary has come out on top, with a predicted wage growth of 4.9 percent.
The poor UK performance is a result of inflation, which has increased due to the pound’s weakness since Brexit, pushing up the cost of importing food and fuel.
According to O’Grady, the average wages will not recover until 2025.
The CBI has warned the British government that it must secure a transitional deal with Brussels to ensure a smooth exit from the EU. Failure for a speedy deal will mean a risky future for investment and jobs.
“From our politicians, we need unity, clarity and certainty, not a different opinion every day,” saidCarolyn Fairbairn, head of the CBI, in her end of year letter to more than 190,000 members.
The cost of living has seen an increase since the referendum vote. New data from the Office for National Statistics (ONS) showed that food prices were up last month by 4.2 percent compared to the 12 months earlier.
“It may be an expensive Christmas dinner this year as a [result] of more costly imports and higher world food prices, particularly for dairy products,” said Rachel Lund, the BRC’s head of retail insight and analytics.