The most striking slide in a recent talk by Finance Undersecretary Karl Chua was the one titled 'Real labor productivity has been increasing, yet real wages
have been stagnant,' rather than anything specific to his advertised topic of TRAIN (Tax Reform for Acceleration and Inclusion), at the Foundation for Economic Freedom.
Alternatives to conventional measures of real wages
, as well as direct indicators of consumption spending, suggest that below-median income families have seen gains in material well-being since 1960.
Table 1 Real Wage
Growth (in % terms), Mean Real Wage
Levels (in rupees) for Workers with Union Membership, Workers without Union-Membership in Enterprises with Unions and Workers in Enterprises without Union Year Workers with Workers in Unionized Union Membership Enterprises without Union-Membership Real Wage
3% inflation forecast, this equals a real wage
increase of 2.
Grant should have reemphasized the decline in real wages
that made costs of production competitive, though he does refer later in the book to real wage
Some longer-term changes in the economy have likely played a larger role in depressing real wage
TUC Midlands regional secretary Lee Barron said: "Despite growth returning, 2014 was another miserable year for living standards in the West Midlands with real wages
falling by over PS1,000 in real terms.
The TUC believes that the combination of soaring house prices, stagnating pay in the run-up to the crash and the longest real wage
squeeze in over a century will leave house prices more out of reach than ever before.
The scale of the real wage
falls is historically unprecedented, certainly in the past fifty years where broadly comparable records exist (see Taylor et al.
TUC general secretary Frances O'Grady said: "Britain's great wage squeeze shows no sign of abating - 40 consecutive months of real wage
falls means people have less to spend on the high street.
growth in the private sector has moved from -3.
Its research found a drop in real wage
levels meant companies were able to take on more members of staff while output remained the same.