Britain’s population has boomed over the last ten years - breaking the rule that growth stagnates at a time of recession, according to Sheffield academics.
The team at the Sheffield Political Economy Research Institute found the population was still increasing despite the coalition government’s attempts to curb immigration.
And the price to pay is that although the economy is creeping towards recovery in statistical terms, living standards remain significantly below their pre-recession peak.
Dr Craig Berry said the increasing population helped to explain why firms were concentrating on labour-intense but low value-added industries.
He said: “Stagnating living standards are the price we are paying for recovery. The link between population and economic growth has been weakened by a long-term shift towards a services-led economy.”