The union’s report highlighted that between 2007 and 2011 real wages, the take home pay after taxes have been deducted, fell by 4.5% in the UK, an even tighter squeeze than the fall seen in Italy (-2.7%) and Japan (-0.7%).

2011 saw the biggest decline in the UK as wages shrunk 3.5%, shrinking twice the rate of Spain, the second worst performing economy that year.

The TUC says that these figures highlight the extent to which the recession and subsequent economic stagnation has squeezed the incomes of ordinary workers.

Frances O’Grady, TUC general secretary, said: “UK workers have suffered a bigger fall in wages than any other workforce in the world’s top ten developed economies.

“While most countries have suffered periods of negative wage growth, no-one has witnessed such a marked decline as the UK.

“This government’s blind obedience to self-defeating austerity has ensured that we are leading the way when it comes to the squeeze on living standards.”

“Businesses desperately need people to spend money but employees are cutting back as their wages are squeezed. And the public sector, far from making up the gap, is being slashed too.

“Unless we get stronger economic growth with rising real wages consumer spending will remain weak and the economy will continue to flat-line.”

In contrast, wages in Australia and Canada rose by 6.9% and 5.4% respectively.