Recovery for real time wages a "long way off"

British workers will have to wait patiently for their inflation-adjusted wages to rise to levels close to their 2009 peak, according to a top thinktank.

Insight from the National Institute of Economic and Social Research (NIESR) shows that real-time wages, which are calculated after inflation – or the cost of living – has been taken into account, will only improve in tandem with a boost in productivity. According to analysts, employee work rates have been “abysmal” in recent years.

Simon Kirby, a principal researcher at the NIESR, warned that Britain will have to wait at least another six years before real wages are back to pre-crisis levels. This comes despite many analysts predicting the UK to bounce back from the recession.

“It's a long way off,” Mr Kirby told “It will take a number of years before people actually start to feel the recovery.”

A recent study from the Office for National Statistics backs up Mr Kirby's predictions. The body claims that real wages have fallen by 2.2 per cent since the first three months of 2010 and, almost echoing the beliefs of the NIESR, attributed the decline to reduced output from Britain's working population.

However, some groups have taken a different stance on the matter and believe a full recovery in real wages is imminent. Cited by, representatives from the Institute for Fiscal Studies said real wages will rise faster than inflation over the next few months, triggering the first salary increase in five years.