Like America, Britain doesn't make anything anymore, can't compete with labour costs. Also though we have another problem in the factories we do have here. Factory owners have stopped employing british workers preferring instead to employ eastern europeans through agencies, because they don't complain if working law is broken. They'll also work long hours for minimum wage. It's an issue now because the unemployed are asking why those jobs are never advertised. One company is about to be prosecuted for advertising factory jobs and requiring applicants to sepak polish, or not apply. That's illegal in the uk.
Other than the language thing, the same thing happens here in the US with immigrants. Sure, some immigrants are illegal, and some work for less than minimum wage. But the real problem is that for some unknown reason, people in America (and the UK, I gather) feel they are entitled to higher wages than the rest of the world.
A lot of people here feel that minimum wage is unjustifiably low (I think any minimum is unjustifiable) without seeing the other side of the coin. Most people coming right out of secondary school don't have any marketable skill set whatsoever. Any training to actually perform their job is provided by the employer, and these kids are unlikely to keep their jobs for very long.
The real problem with America is it's practically impossible to legally have a micro-business. Basically, enough income to feed yourself and your family. Even to cut another person's hair, you have to go through beauty school and be liscensed here in Virginia. You cannot legally charge people money for haircuts unless you have done these two things. As you might imagine, the initial training and requirements for such a business can be very expensive.
You might be very good at cutting hair, and you could do such a business out of your own home for $5 a cut, but it's illegal, so you can't.
This is just one example of many that attribute to the poor staying poor.
This is the problem with fascism. Those in power stay in power, not by the justification of their legitimate businesses, but by the outlawing of the competition. If it's too expensive to compete, or illegal to compete, there will be no competition.