Cameron called on employers to give staff a pay rise as the economy grows. Some experts are referring to this as “pre-election mood music”. Michael Kitson, University Senior Lecturer in International Macroeconomics at Cambridge Judge Business School, said:
We have got modest economic growth, but it is based on low productivity, which results in a low wage economy. It is very unlikely that business will increase their wages because the Prime Minister’s advised them to do so … In the longer term we need a strategy for investment in productivity [as] that will increase real wages.
Listen to the interview (from 40m 45s, available till 10 March 2015) [bbc.co.uk]