The Coalition Government is facing warnings of a lost decade of economic growth.
Research by the Trades Union Congress (TUC) based on International Monetary Fund (IMF) forecasts, suggests the economy will not return to pre-crash levels until 2017.
It also found that the UK's economic growth was slower than the vast majority of other advanced nations.
The research was released just as IMF inspectors start a two-week visit that will determine the body's annual report on the UK's progress.
The arrival of the assessors will begin a tense time for the Coalition. The IMF initially backed its plans to cut public spending and tackle the budget deficit, but the organisation is now more concerned about the lack of growth in the UK, warning that the Coalition may have to change tack.
Union leaders called on George Osborne to follow the US example of investing in jobs and infrastructure.
The TUC warns that by 2017 income per head in Germany and the US will be more than 10% higher a decade on from the start of the financial crisis.
The study also shows the UK is emerging from recession at a slower rate than at any time in recent history.
It found that in 1985, UK income per head was 6% higher than before the 1980 crash, and in 1995 it was 7% higher than before the 1990 recession. UK income per head today is still 6% below its 2008 level.
TUC General Secretary Frances O'Grady said: "We truly are experiencing a lost decade for growth.
"Even George Osborne's favourite economic institution, the IMF, is calling on him to change course.
l Lord Turner, former chairman of the Financial Services Authority, has warned attempts to reduce borrowing could trigger a cycle of debt, resulting in a banking crash in 10 to 15 years.
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