Labour Market

Pay increases must be accompanied by productivity gains

Len Shackleton quoted in The Telegraph

IEA Editorial and Research Fellow Professor Len Shackleton has been quoted in The Telegraph stressing the importance of high productivity in ensuring a sustainable increase in real wages.

This is in light of recent figures by the Office for National Statistics (ONS) that saw pay rises failing to keep up with inflation from March to May 2022.

Referencing the need for high productivity, Len argues:

“Without improvement in this the economy will struggle to generate sustained increases in real pay, even if the employment picture remains positive.”

Read the full article here.