TUC: Chancellor must prevent economy of low productivity and cheap labour

Thursday 7 February 2013

Chancellor George Osborne must prevent a slide towards an economy with low productivity and cheap labour, according to the latest report by the Trades Union Congress (TUC).

According to the organisation, productivity growth is the best way to decrease the structural deficit, deliver economic growth and raise living standards.

It explained that the collapse in demand for staff during the recession caused real wages to fall and over one million job losses were experienced.

A recent analysis by the TUC found that a worker on a median salary of around £25,000 has already suffered a real wage loss of almost £4,000 since December 2009.

The report also argues that poor levels of business investment, which stands at 15 per cent below pre-recession levels, and a lack of access to funding are also harming productivity.

Frances O'Grady, general secretary at the website, commented: "Solving the UK's productivity puzzle may not be the main conversation in Britain's pubs, cafes and offices but it's the best way to reduce the structural deficit, raise living standards and secure sustainable economic growth."