Government urged to invest in jobs and wages

By staff writers
January 31, 2015

Trade unions are urging the UK Government to invest in jobs and wages to achieve a genuine economic turnaround, as evidence grows that supposed recovery is partly, one-sided and fragile.

The comments came in response to the earnings chapter published on 30 January 2015 from the forthcoming Institute of Fiscal Studies (IFS) Green Budget document.

Trades Union Congress (TUC) General Secretary Frances O’Grady said: “The biggest living standards squeeze since records began is nothing to celebrate, with everyone a loser from falling pay.

“At the wealthier end, losses have been offset by rising property values. But everyone else has been hit by a triple whammy of falling pay, cuts to in-work support like tax credits, and cuts to the services they depend on. And the future cuts in George Osborne’s plans mean years more pain to come.

“We must do far more than hope for a lucky run of low inflation figures to restore wages. We need much stronger wage settlements and more investment in high skilled jobs and a high productivity economy.”

IFS research shows that average earnings remain well below their 2008 pre-crisis levels.

The declared goal of the Institute for Fiscal Studies is "to promote effective economic and social policies by better understanding how policies affect individuals, families, businesses and the government's finances."

* TUC: http://www.tuc.org.uk/

* IFS: http://www.ifs.org.uk

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