Friday, October 12, 2018

Weakening of trade unions behind pay stagnation, says Bank of England’s Chief Economist

Andrew Haldane, Chief Economist at the Bank of England, has pointed to the decline in trade union power as a key factor in the last ten years of real wage stagnation, alongside the rise of insecure work, low productivity and automation.

Speaking to trade unions and business earlier this week, he said: "Sectors of the UK economy with higher levels of unionisation have seen smaller falls in their labour shares. Over the past few decades, a sector like administration and support activities with under 10% unionisation rates has seen its labour share decline, while a sector like education with a unionisation rate close to 50% has seen its labour share rise."

The last ten years have been historically unusual, he added, in that employment has risen but pay has not followed.

Indeed, workers are feeling the pinch across the UK and some of those in the most insecure types of jobs are taking a stand.

Hat tip IER

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