
© Mustasinur Rahman Alvi/Eyepix GShop Labor
Real wages across the world dropped in 2022 for the first time since the global financial crash as
the worsening cost-of-living crisis threatens to spark social unrest and deepen inequality, the United Nations labor agency warned earlier this week.
According to the latest report released by the
International Labor Organization (ILO), monthly wages declined by 0.9% in real terms in the first half of the current year, marking
the first negative wage growth since 2008. The report titled "The impact of inflation and Covid-19 on wages and purchasing power" notes that the crisis is reducing the purchasing power of the middle classes and hitting low-income households particularly hard.
Real wages across advanced G20 economies in the first half of 2022 are estimated to have declined by 2.2%, while those in emerging G20 countries grew by 0.8%, which is 2.6% less than in pre-Covid 2019.
Over the past several years, pandemic-related supply chain bottlenecks along with geopolitical uncertainty have significantly boosted food and energy costs,
sending inflation in many countries to the highest levels in four decades.
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