Global wages falling this year, UN says
World/National News
Written by Eliane Engeler   
Tuesday, 03 November 2009 08:16

In this Wednesday Oct. 21, 2009 photo, construction workers labor at the top of a building in Shanghai, China. China's economy charged ahead in the third quarter, expanding by 8.9 percent thanks to lavish stimulus spending that sparked a boom in construction, share prices and consumer spending. Growth for the first nine months of the year was 7.7 percent, the National Statistics Bureau reported Thursday. Officials have said they expect the economy to at least reach the annual growth target of 8 percent. (APPhoto/Eugene Hoshiko)GENEVA (AP) — Global wages fell in the United States and some other wealthy nations in the second quarter of the year, raising questions about whether workers are sharing in any economic recovery, the U.N. labor agency said Tuesday.

The International Labor Organization said inflation-adjusted wage growth fell sharply around the world last year to 1.4 percent, from 4.3 percent in 2007. It said wages are falling in a number of countries so far this year.

"The picture on wages is likely to get worse in 2009, despite the beginning of a possible economic recovery," the 15-page report said.

The ILO analyzed data from 35 countries including Brazil, Britain, Japan, South Africa and Ukraine. China and India, which provide large amounts of the world's workers, were excluded from the report.

Monthly wages have fallen almost 2 percent in the United States since January, said Patrick Belser, an ILO economist.

Manuela Tomei, ILO's employment chief, said wage declines were depriving national economies of much needed demand and were contributing to sapping consumer confidence.

"The continued deterioration of real wages worldwide raises serious questions about the true extent of an economic recovery, especially if government rescue packages are phased out too early," Tomei said.

The ILO noted some good efforts by governments to help workers, citing minimum wage increases above inflation in the United States, Brazil, Japan and Russia.

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"In the U.S., there is a real policy toward strengthening the wage policies," Belser said, adding that Washington was trying to make it easier for workers to join unions.

"These measures can go a long way in addressing the imbalance that we found before the crisis, particularly with zero growth in the median wages in the U.S. for many years despite a booming economy," he said.

Last Updated on Tuesday, 03 November 2009 08:26
 
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