Globally, average real monthly wages fell by 0.9% across many countries in the first half of 2022 due to rising inflation, said the International Labour Organisation (ILO).
According to the ILO’s Global Wage Report 2022-2023, the decline in wages marks the first instance of negative growth this century and has reduced the purchasing power of middle-class families and adversely impacted low-income households.
Multiple global crises have “placed tens of millions of workers in a dire situation, as they face increasing uncertainties”, said Gilbert F Houngbo, ILO Director General.
He added, “Income inequality and poverty will rise if the purchasing power of the lowest-paid is not maintained. In addition, a much-needed post-pandemic recovery could be put at risk. This could fuel further social unrest across the world and undermine the goal of achieving prosperity and peace for all.”
In Asia and the Pacific, real wage growth rose to 3.5% in 2021, before slowing down to 1.3% in the first half of 2022. Without considering China, real wage growth rose by just 0.3% in 2021 and 0.7% in the first half of 2022.
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