International Economics

Real wages under pressure as global economic crisis continues to bite, UN report finds

0

Real wages appear to be stagnating worldwide for the second consecutive year, underlining the fragility of any potential recovery from the global economic crisis, the United Nations International Labour Organization (ILO) reported today.

 

The ILO’s annual study of global wages shows that growth in real wages – measured across 53 countries – declined from an average of 4.3 per cent in 2007 to 1.4 per cent last year. In some of the biggest economies sampled, real wages actually fell by 0.2 per cent last year.

 

This year, according to the ILO, “the picture on wages is likely to get worse,” with figures from the first quarter of 2009 indicating that real wages in nearly 20 countries are now falling outright, often because of cuts to the number of hours worked.

 

Manuela Tomei, the director of ILO’s Conditions of Work and Employment programme and the lead author of the study, said the findings raise “serious questions about the true extent of an economic recovery, especially if government rescue packages are phased out too early.

 

“Wage deflation deprives national economies of much needed demand and seriously affects confidence,” she added.

 

In June ILO members responded to the global economic crisis by adopting a ‘global jobs pact’ that calls for measures to maintain employment and to avoid deflationary wage spirals and worsening working conditions.

 

Today’s study notes that in the past few years both rich and poor countries have boosted their minimum wage levels by more than the rate of inflation because of concerns about increasing inequality.

 

Describing these changes as “an important policy tool for social protection,” the report proposes that tax reductions and other income-support measures also be introduced to further protect low-paid workers.

 

“Minimum wages, social dialogue and collective bargaining are all ways of avoiding deflationary wage spirals and their impact on society,” Ms. Tomei said.

 

In addition, the report warned that the economic crisis has worsened the problem of wage arrears in some countries, including Ukraine and Russia.

 

On Thursday the ILO’s governing body gathers in Geneva to discuss the study and how to implement the global jobs pact.

 

United Nations

About the author / 

Admin

Leave a reply

You must be logged in to post a comment.

jga bookreview


jga bookreview


cesran_unai


jga bookreview


jga bookreview


jga bookreview


jga bookreview


jga bookreview


jga bookreview


jga bookreview

CESRAN Blog

  • New Issue is Out Now!

    Vol. IV | No. V – October-November-December 2018 To Download the Magazine Click Here… CONTENTS 04-06…..World News by Furkan Sahin  08-20…..Terrorism in Syria and Beyond: An Interview with Prof. Alain Gabon by Dr. Rahman Dag 22-24…..Erdogan’s Best Shot is Still in the West by Dr. Murat Ulgul 26-30…..Raqqa vs Kobani – Terrorism vs Revolution by Dr. Rahman Dag 32-34…..Future of…

  • Domestic Politics and the Design of International Institutions

    Abstract Scholars are increasing focused on how and why states design international institutions. International relations theories have historically guided research on these institutions, but have not provided adequate insights into the theoretical bases for their design. Rationalists’ theories of domestic politics offer an alternative approach to understanding institutional design. This study utilizes the positive theory…

  • Five generations after the Balfour Declaration: How do Palestinians Resist and Engender Significant Social Change?

    How to Cite: SELLICK, P. (2018), Five generations after the Balfour Declaration: How do Palestinians Resist and Engender Significant Social Change?. Journal of Conlicft Transformation and Security, 6(2): 139–142. The context of Israeli expansion and Palestinian dispossession Over the past year, a series of anniversaries has occurred which marks the progressive dispossession and displacement of the Palestinians….

  • CESRAN International named the World’s #83 “Best Independent Think Tank”

    CESRAN International is pleased to announce that it has been named the world’s number 83 “Best Independent Think Tank”. The ranking was announced in the 2017 Global Go To Think Tank Index Report compiled by the University of Pennsylvania’s Think Tanks and Civil Societies Program (TTCSP) at the Lauder Institute. CESRAN International was also ranked 77th among the “Top Environment…

  • The Current State of AI as We Begin 2018

    Artificial intelligence (AI) states one recent article is no smarter than a six-year-old. A study that appeared last summer compared the intelligence quotient (IQ) of Google, Apple, Baidu, and Bing AI to the average human 18, 12, and 6-year-olds. The 6-year-old’s IQ was rated at 55.5 while the 12 and 18-year-olds rated 84.5 and 97.0 respectively. The end result rated…