Workers have been left almost £100 a week worse off since before the financial crisis because of the UK’s poor productivity levels, according to a new report.
A TUC study found that if average earnings had grown at the same rate as in the years before 2008, workers would be on £95 a week more.
The organisation said eight years of economic under-performance had left productivity 16 per cent below its pre-recession trend, while business investment growth was “weak”.
As part of its pre-Budget statement, the TUC urged the Government to take action to boost productivity, and to pull back from any plans to cut spending.
TUC general secretary Frances O’Grady said: “The Chancellor can say what he likes in the Budget - the history books already record him as the man who delivered the slowest recovery in modern history.
“The Government’s failure to get productivity growing again has hit workers in the pocket, leaving them £100 a week worse off.
“It’s time the Government stopped blaming others for its failure to mend the economy and took responsibility for delivering high productivity growth that everyone shares in.”
A new round of cuts would do nothing to increase productivity and harm growth and wages.
“We need strong, sustainable growth which can only be delivered with a major programme of investment in skills, infrastructure, innovation and high-quality public services.
“As productivity growth is restored, the Government must ensure workers get their fair share through higher wages and decent working conditions.”