December 12, 2022 | By: Felix Richter | World Economic Forum
Global monthly wages fell 0.9% this year on average, marking the first decline in real earnings in the 21st century, according to a new report.
This is paired with inflation, which rose higher in high-income countries, leading to above-average real wage decline in North America and the EU.
Fighting against the deterioration of real wages can help maintain economic growth and lessen the probability of recessions in all countries and regions, the report’s author says.
The global inflation crisis paired with lackluster economic growth and an outlook clouded by uncertainties have led to a decline in real wages around the world, a new report published by the International Labour Organization (ILO) has found. According to the 2022-23 Global Wage Report, global real monthly wages fell 0.9 percent this year on average, marking the first decline in real earnings at a global scale in the 21st century.