China and Russia lead wage recovery while rich economies lag behind, UN says
Subscribe to enjoy similar stories. Real wages are growing again as the rise in inflation abates, but remain below their prepandemic levels in many parts of the rich world even as they surge in China and Russia, according to a report released Thursday by the United Nations. In its annual survey of wage developments, the U.N.’s International Labour Organization said wage inequality within countries has fallen since the start of this century, with the decline being most pronounced in poorer countries.
In many countries around the world, pay failed to keep pace with a surge in prices of energy, food and other goods and services during 2022, resulting in a sharp decline in real wages as pay. In some countries, that decline continued through 2023, but there have been clear signs of a broad rebound in 2024. The ILO said that global wages in the first half of 2024 were 2.7% higher than in the same period a year earlier, having risen by 1.3% in 2023 following a 1.5% decline in the previous year.
That was the fastest growth in 15 years. However, the recovery in wages has been led by Asia, with Europe and North America lagging. In most rich members of the Group of 20 largest economies and many poor countries, real wages remain below the levels seen before the Covid-19 pandemic.
“The return to positive real wage growth is a welcome development," said ILO Director-General, Gilbert F. Houngbo. “However, we must not forget that millions of workers and their families continue to suffer from the cost-of-living crisis that has eroded their living standards." In the first half of this year, real wages remained lower than in 2019 in Germany, France, Italy and the U.K., as well as in Japan and South Korea.
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