The latest research by tax specialists, RIFT Tax Refunds, has revealed that real wage growth currently sits at 4.2% across the UK, with just four other G10 nations currently home to a worse balance between wage growth and inflation.
RIFT analysed the current rate of real wage growth based on the increase seen in earnings versus the current rate of inflation across each G10 nation to reveal how the UK is currently performing on a global basis.
The latest figures show that actual wage growth is currently at 5.9% across the UK, the second highest of all G10 nations behind Belgium. However, while inflation has eased from the 41 year high seen in October of last year, it remains at a notable 10.1%. Along with Italy, this is the joint second highest current rate of inflation of all G10 nations, with just Sweden home to a higher rate of 12.3%.
As a result, it means the current rate of real wage growth across the UK is currently -4.2%.
While the current rate of inflation in Germany is comparatively lower than the UK at 8.7%, the nation has seen a -5.7% reduction in actual earnings, with the balance between the two the worst of all G10 nations at -14.4%.
In addition to Germany, just Sweden (-9.3%), Italy (-8.6%) and France (-5.1%) currently rank below the UK in terms of real wage growth.
CEO of RIFT Tax Refunds, Bradley Post said, “The current economic landscape is rather gloomy, to say the least, and while UK inflation has eased in recent months, it remains the second highest rate when compared to all G10 nations.
So despite the fact we’ve also seen some of the strongest levels of wage growth in the G10, we currently sit in the bottom half when it comes to the level of real wage growth.
Of course, while it’s hard to ignore the current cost of living crisis at our own front door, it certainly could be a lot worse, with Germany, Sweden, Italy and France all suffering to a far greater extent.”