This is why your job is not paying you enough
- Dramatic slowdown of wage growth in developing countries has a key impact global slowdown.
- Only China is witnessing wage growth in developing nations.
- Collapse in oil and also commodity prices is partly responsible for this problem in developing nations.
United Nations recently reported that global wage growth has significantly slowed down and this can lead to inequality and suppress consumption across the world. UN's International Labour Organisation (ILO) in the report that is published once every two years since 2008 mentioned that the key driver of this trend can be attributed to dramatic slowdown of wage growth in developing countries.
This report studies worker compensation in various regions of the world for offering a broader understanding of where household, as well as consumer purchasing power, is heading in the world.
The ILO statement discloses that wage growth across the globe went down from 2.5% in 2012 to 1.7% last year and this is the lowest level in four years, and according to ILO deputy director for policy, Deborah Greenfield, this is a major concern.
Apart from China which is still witnessing significant growth in wages, rest of the developing nations are either witnessing slowed down or halted wage growth.
According to the lead author of the paper, Patrick Belser, collapse in oil and also commodity prices is partly responsible for this problem in developing nations.
The report also says though the richer nations are seeing better growth due to 'growing economic, social and political uncertainty' it's tenuous.
Another important highlight of this report is the gender pay gaps and also discrepancies among the compensation received by executives and junior staff.