DTI report raps UK employers' knuckles

UK employees earn less and work longer hours than their counterparts abroad according to survey from the Department of Trade and Industry.

The UK Competitor Indicators 1999 report reveals that the average UK salaries are one fifth lower than workers in six other leading industrial nations. An average UK employee works 44.9 hours a week but earns £15,000 - over £2,000 pounds less a year compared with the European average. However, output per hour also falls short of standards set in Canada, United States, Germany, Italy and France.

The government report blames the lower wages on inadequate management and a shortage of basic skills in the UK labour force. The UK scraped into eighth position out of nine in a test of literacy - beating only the United States - but managed only last position on a test of numeracy.

Stephen Byers, Trade Secretary, urged UK managers and employees to "work smarter, rather than harder" to encourage UK innovation.