Data from 2022-23 Global Wage Report by the International Labour Organization found global real monthly wages fell globally for the first time in the 21st century (-0.9% in 2022).
Main highlights of the Global Wage Report:
- 2022 Real Wages Decline in North America (-3.2%) & European Union (-2.4%)
- Women Expected To Lose More Jobs Than Men In 2022
- Advanced G20 Countries Experience -2.2% In Real Wages In 2022
- USA and Canada Among Countries Most Affected by Inflation (-3.2% & -3.4% In Real Wages For 2022)Real Wages Decline in North America, European UnionIn Canada and the United States, average real wage growth fell to zero in 2021 and dropped to minus 3.2 percent in 2022, the second-lowest mark of any region in the study.
Meanwhile, real wages declined to minus 2.4 percent for countries within the European Union in 2022
Real wage growth in Latin America and the Caribbean declined to minus 1.7 percent in 2022.
Women Lost More Employment Than Men in 2022
The wage report also found that women generally lost more employment than men in 2022 and during the COVID-19 crisis.
In fact, since the second quarter of 2020, the global employment of women has been reduced by 1.2 percentage points more than for men.
Advanced G20 Countries Experience Decline In Real Wages
Among advanced G20 countries, real wages have declined to minus 2.2 percent.
On the other hand, real wages in emerging G20 countries grew by 0.8 percent.
USA and Canada Among Countries Most Affected by Inflation
According to the data, Hungary experienced the most growth in 2022, as real wages increased by a healthy 12.4 percent. Australia (5.0%), Serbia (3.5%), and Vietnam (3.4%) were among the countries that experienced the highest real wage growth.
Italy (5.0%), Spain (-3.5%), Sweden (-3.4%), and Canada (-3.4%) were among the other developed countries hit hard by inflation.
The United States narrowly missed out on the bottom-10 with real wages growth declining by minus 3.2 percent.
Here are the top-10 and bottom-10 countries in terms of real wage growth in 2022.
Top 10 Countries in Real Wage Growth (2022)
- Hungary: 12.4%
- Australia: 5.0%
- Serbia: 3.5%
- Vietnam: 3.4%
- Argentina: 2.2%
- China: 2.0%
- Republic of Korea: 1.1%
- China: 0.5%
- Finland: 0.4%
- Tajikistan: 0.0%
Bottom 10 Countries in Real Wage Decline (2022)
- Nicaragua: -7.6%
- Poland: -6.9%
- Brazil: -6.9%
- Czech Republic: -6.8%
- Italy: -5.9%
- Netherlands: -5.0%
- Denmark: -3.5%
- Spain: -3.5%
- Canada: -3.4%
- Sweden: -3.4%
Credit: liam.solomon@finixio.com
