Top Stories,Wages are recovering after negative shift in 2022, says UN labour agency

Wages are recovering after negative shift in 2022, says UN labour agency

28 November 2024

GENEVA – After a negative shift in 2022, global wages are beginning to recover, according to a new report from the International Labour Organization (ILO).

The report, “Global Wage Report 2022-23: Wages and minimum wages in the time of COVID-19”, found that real wages – that is, wages adjusted for inflation – declined by 0.9 per cent in 2022, the first decline since 2016.

However, the report also found that wages are beginning to recover in 2023, with real wages expected to grow by 2.0 per cent. This is still below the pre-pandemic growth rate of 2.6 per cent, but it is a sign that the labour market is improving.

The report also found that minimum wages have been increasing in many countries, with 90 per cent of countries reporting an increase in the minimum wage in 2022. This is a positive development, as minimum wages can help to reduce poverty and inequality.

However, the report also warns that the recovery in wages is uneven, with some countries experiencing stronger growth than others. In addition, the report finds that the gender wage gap remains persistent, with women earning on average 20 per cent less than men.

The ILO is calling on governments to take steps to support wage growth, including by investing in public infrastructure, promoting job creation, and strengthening social protection systems. The ILO is also calling for more action to address the gender wage gap.

“Wage growth is essential for improving the living standards of workers and their families,” said ILO Director-General Guy Ryder. “Governments need to take steps to support wage growth, particularly in the context of the ongoing COVID-19 pandemic.”

Here are some of the key findings of the report:

  • Real wages declined by 0.9 per cent in 2022, the first decline since 2016.
  • Wages are beginning to recover in 2023, with real wages expected to grow by 2.0 per cent.
  • Minimum wages have been increasing in many countries, with 90 per cent of countries reporting an increase in the minimum wage in 2022.
  • The gender wage gap remains persistent, with women earning on average 20 per cent less than men.
  • The ILO is calling on governments to take steps to support wage growth, including by investing in public infrastructure, promoting job creation, and strengthening social protection systems.

Wages are recovering after negative shift in 2022, says UN labour agency

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