Real wages have fallen over the past six years at a rate not seen since the mid-19th century, according to trade unions.
The Scottish Trades Union Congress (STUC) said the collapse in real wages since 2009 was "without precedent" in modern times.
STUC analysis in advance of Chancellor George Osborne's Budget statement on March 18 found that the real median wage in Scotland fell for the fifth consecutive year in the 12 months to April 2014.
Women who work part-time were the biggest losers, earning 11.6% less over that period than if wages had kept pace with inflation.
In contrast, the real wages of financial sector directors and managers increased by 23% over the last year, the trade union body said.
The STUC acknowledged that growth in GDP and employment has been higher over the past 24 months than anticipated, but said it was "very sceptical" about the strength and durability of the recovery and its impact on living standards.
In a submission to the UK Government, the body said: "The economy emerging from the 'great recession' is one characterised by low wages, rising insecurity for those in and out of work, rising household debt and a failure of 'rebalancing' at all levels."
STUC officials said government austerity policies had failed and called on Mr Osborne to act on its concerns in his statement to MPs.
General secretary Grahame Smith said: "As the economy emerges from years of recession and stagnation, the anticipated recovery in living standards has failed to materialise.
"The prolonged collapse in real wages is without precedent during the last 150 years and benefit cuts have meant society's most vulnerable have suffered most from the coalition's misguided economic and social policies.
"It is striking that over the last year financial-sector directors and managers received the highest wage increase (23%) across the Scottish economy while low-pay occupations such as retail cashiers (-12%) and elementary sales (-9.4%) have suffered yet another of significant real wage cuts.
"The economy is rapidly returning to a turbo-charged version of the pre-crisis model."
Trade unions want a halt to government fiscal consolidation until real wages have grown for a sustained period and productivity improves.
The STUC also called for an increase in public investment, wider promotion of the living wage and a new 50p higher rate of tax.
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