The latest data from the International Labour Organization (ILO) highlights a significant recovery in global wage growth, potentially marking the largest increase in over 15 years, according to ILO Director-General Gilbert Houngbo. This uptick reflects a rebound from the 2022 global wage decline of 0.9 percent due to inflation outpacing wage growth. However, the gains are uneven, with industrialized countries experiencing modest wage growth of 0.9 percent, while emerging economies saw a substantial near-six percent increase in 2023, continuing into 2024.
Despite the positive trajectory, inflation persists as a challenge, particularly impacting low-income households’ cost of living. Regionally, wage growth has flourished in Asia, the Pacific, Central and Western Asia, and Eastern Europe. Yet, certain areas like Africa and Northern America lag behind.
A persistent issue highlighted by the ILO is that productivity has risen more sharply than wages in wealthy countries from 1999 to 2024, driven by events like the 2008 financial crisis and the COVID-19 pandemic. This has led to wage inequality decreasing in two-thirds of the countries, especially low-income nations, where the annual reduction has ranged between 3.2 and 9.6 percent. In contrast, high-income nations have seen more modest declines in wage inequality, with upper-income earners experiencing the most notable equity shifts.
The ILO’s findings underscore the complexity of wage trends, regional discrepancies, and the productivity-wage gap, calling for more equitable wage policies worldwide.
Original Story https://news.un.org/feed/view/en/story/2024/11/1157576
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