A new survey shows the depth of concern over economic insecurityby Atif Shafique / January 19, 2018 / Leave a comment
This is the decade where our economy has broken records—for all the wrong reasons. It is set to be the worst ten-year period of productivity and pay growth for over two hundred years. To compensate, British households recently became net borrowers for four successive quarters—the first time since records began in 1987. There are now more people in poverty in working households than workless ones. The historic link between GDP growth and wage growth has severed; so too the link between employment growth and wage growth. Economists are baffled. The signs are that we may not just be experiencing a Japanese-style “lost decade,” but a lost generation.
My recent RSA report (in partnership with Nottingham Civic Exchange) argues that economic insecurity is a critical part of this story. To understand the challenges facing workers and families, the traditional lenses of poverty and inequality are important but insufficient. We also need an account of how economic insecurity—harmful volatility in people’s economic circumstances—impacts people’s lives and shapes their interaction with the economy.