Follow the money: exploring the link between UK growth and workers' pay packets

Cover image
Document type
Briefing
Author(s)
Whittaker, Matthew
Publisher
Resolution Foundation
Date of publication
30 August 2019
Subject(s)
Trends: economic, social and technology trends affecting business, People management: all aspects of managing people
Collection
Business and management
Material type
Reports

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This briefing note unpicks the relationship between productivity and pay growth, looking at a variety of factors that influence pay growth for different groups of employees in the UK – from trends in the labour share to terms of trade movements, and from the role of employer pension contributions to the impact of changes in working patterns.

While the relationship is a complicated one, it concludes that the central message from the UK’s decoupling story is a repeat of the one heard multiple times in the post-crisis period: namely that restarting wage growth and supporting household living standards rests above all else on restoring productivity growth to its former levels.

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