UK workers face steep slide in real wages – PwC

Lazy eyes listen


According to the latest report on the UK economy released earlier this week by multinational consultancy PwC, the average pay of a British employee will drop to a level last seen in 2006.

According to the professional services network, real wages will fall by up to 3% in 2022 and another 2% the following year, after accounting for inflation.

“2022 has obviously been a highly challenging year for the UK economy, and it is not surprising that these chilly headwinds will continue throughout 2023,” said Barret Kupelian, senior economist at PwC, in response to the report.

The cost-of-living crisis will persist, according to PwC analysts, with the weekly food bill rising to £100 ($120), more than double the rate at the turn of the century. House prices in the UK are expected to fall by 8%, with sales falling below one million for the first time in nearly ten years.

According to the forecast, Britain is on its way to becoming a less happy place to live, with a 20% increase in divorces to nearly 140,000 in England and Wales, equal to 16 marriage breakups every hour.

According to the London-based consultancy, over 300,000 British workers could return to work next year. This is expected to reduce economic inactivity and relieve staff shortages in highly skilled industries. According to the report, the increase in immigration to the UK could also contribute £19 billion (nearly $23 billion) to the economy, accounting for 1% of GDP growth.

“Despite a contracting economy, the UK remains an appealing destination for workers,” said PwC economist Jake Finney. “By 2022, the UK’s immigration level would have reached a record 1.1 million, with targeted schemes aimed at Ukrainians, Afghans, and Hong Kong residents adding around 140,000 to the total.”