Growth in global pay slows

Global monthly wages grew by 1.2% in 2011, down from 2.1% in 2010 and 3% in 2007, according to a report by the International Labour Organisation (ILO).

The Global wage report 2012/13 found that, although wage growth in developing countries suffered a double-dip with a forecast of zero percent in 2012, in parts of the world, such as Latin America, the Caribbean, Africa and Asia, wage growth remained positive throughout the financial crisis.

The report found that, between 2000 and 2011, real average wages globally grew by just under a quarter. In Asia, wages doubled during this period, and in Eastern Europe and Central Asia wages nearly tripled.

The report also found that wages have grown at a slower pace than labour productivity, which the ILO said means that employees are benefiting less from the work they are doing, while the owners of capital are benefiting more. In developed countries, labour productivity has increased more than twice as much as wages since 1999.

Guy Ryder, director-general at the ILO, said: “This report clearly shows that, in many countries, the crisis has had a strong impact on wages and, by extension, workers. But the impact was not uniform.”