UN: Inflation leads to falling real wages

In the Global Wage Report 2022-2023 published by the ILO, data was shared on the impact of the crises that broke out this year on purchasing power in low- and middle-income countries.

In the report, it was indicated that for the first time in the last hundred years, the increase in global wages was negative this year, noting that in the first half of 2022, inflation caused by the Covid-19 epidemic and the The Ukraine war reduced global monthly real wages by 0.9 percent.

REAL WAGES FELL 2.2 PERCENT

It was shared that low- and middle-income countries, as well as developed G20 countries, were negatively affected by global inflation, with real monthly wages in these countries falling by 2.2 percent in the first half of 2022. .

In developing G20 countries, monthly net wages were claimed to have risen by just 0.8 percent in the same period, which is 2.6 percent less than the increase in the first half of 2019.

WARNING “INCOME INEQUALITY AND POVERTY WILL INCREASE”

Gilbert Houngbo, Director-General of the ILO, whose assessments are included in the report, said: “The multiple global crises we have been experiencing have led to declining real wages and put millions of workers in a dead end.” . he used the phrase.

Houngbo said: “If the purchasing power of the minimum wage is not maintained, income inequality and poverty will increase. Furthermore, the much-needed global post-pandemic recovery may be at risk.” he performed the assessment of it. (AA)