In the first half of 2022, real wages will experience negative growth, falling by 0.9%, which may jeopardize economic and employment recovery in the future.

(AFP)

[Financial Channel/Comprehensive Report] The International Labor Organization (ILO) stated that as inflation remains high and private purchasing power declines, global real wages will fall by 0.9% in the first half of 2022, which is the first negative wage growth since 2008. A fragile economic recovery is even harder.

The ILO released a report on global wages on Wednesday (30th) and pointed out that the global inflation rate is expected to accelerate to 8.8% by the end of this year. With the impact of inflation on real wages, in the first half of 2022, in real terms, wages There was a negative growth, down 0.9%.

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ILO Director-General Gilbert F Houngbo said that if governments do not take effective measures, real wages may continue to deteriorate, which will jeopardize economic and employment recovery, further exacerbate inequality and social unrest.

The Russia-Ukraine war and the pandemic, which has disrupted global supply chains, have driven up food and energy costs and pushed inflation in many countries to the highest in 40 years.

Global inflation is expected to reach 8.8% by the end of 2022, before falling to 6.5% in 2023 and 4.1% in 2024, according to the International Monetary Fund.

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