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Suaviva: Wage Growth Stagnation Weakens Economic Recovery

2010/12/22 11:56:00 53

The International Labour Organization has warned that the slow pace of global wage growth is weakening the recovery of many economies. It appeals to all countries to raise wage and minimum wage to stimulate economic demand and deal with the economic crisis.

"The stagnation of wage growth is an important factor in the crisis, and it will continue to weaken the recovery of many economies," said the director general of the International Labour Organization, soma.

The global wage report recently released by the organization said that because of the international

financial crisis

In 2008 and 2009, wage growth was halved, and real wages declined in some areas, such as Europe.

The report said: "the actual average monthly wage growth has dropped from 2.8% before 2007 to 1.5% in 2008 and 1.6% in 2009."

The "unusual high inflation rate" in 2008 was mainly due to the rise in oil prices, resulting in a decline in the purchasing power of the year.

The sharp drop in inflation in 2009 has saved wages from a sharp decline.

In some industrialized economies, wages declined by 0.5% in 2008, and wages increased by 0.6% in 2009.

The wage growth in Eastern Europe and Central Asia reached 17% in 2007, down to 10.6% in 2008, and negative growth in 2009, with a decrease of 2.2%. in wages.

Suaviva

"The recession has not only caused millions of people to lose their jobs, but also affected people who are still employed, seriously reducing their purchasing power and lowering their standard of living," he said.

Asia's wage growth was better. Real wages rose 7.2% in 2008 and 8% in 2009.

The report also said that over the past 15 years, more than 2/3 of the countries surveyed were

wages

Less than two of the total number has increased, including Argentina, China, Germany, Ireland, South Korea and Spain.

The report warned, "in these countries and other countries, the number of low-income people is or is growing.

This may cause a large number of people to decline in living standards.

The report stresses that collective wage negotiations and the establishment of minimum wage can ensure that low wage families can share the benefits of economic growth reasonably, thereby contributing to a more stable economic recovery.