The International Labour Organization (ILO), a United Nations agency, has reported a rapid increase in wages worldwide following a negative shift in 2022, Report informs.
According to the ILO's Global Wage Report presented today in Geneva, wages grew by 1.8% in 2023 and continued their positive trajectory in the first half of this year, rising by 2.7% amid a strong post-coronavirus recovery in the global economy.
“If this trend is confirmed, it will be the largest gain in more than 15 years… however, this positive trend is not shared equally across regions,” said ILO Director-General Gilbert Houngbo.
The current global wage growth reflects a notable recovery compared to the 0.9% decline in 2022 when high inflation and rising prices outpaced wage growth.
The trend towards increasing wages is less pronounced in highly developed countries, where wages grew by a modest 0.9% last year. Despite this welcomed development, prices remain too high for low-income households, which continue to struggle with the rising cost of living.
"Inflation – albeit reduced – remains a harsh reality in many emerging and developing countries,” the UN labour agency chief noted.
From a regional perspective, average wages grew faster in the Asia-Pacific region, Central and Western Asia, and Eastern Europe compared to the rest of the world. In 2023, wage growth was positive in most regions, except for Africa, North America, and Northern, Southern, and Western Europe. In 2024, apart from Africa and the Arab states, where average real wages remained stable, wages increased in all regions - from 17.9% in Central and Western Asia to 0.3% in North America.
The ILO noted that in high-income countries, labor productivity grew "at a faster pace" than wages between 1999 and 2024 (29% output growth compared to 15% wage change).