The Strategist

UN: Real wages across the globe fall for first time in 20 years

12/01/2022 - 09:40

Global real earnings decreased by 0.9% in the first half of 2022, according to a UN International Labour Organization (ILO) report, as a result of a global slowdown in economic development and rising inflation.

A fall is observed for the first time in twenty years, which ILO specialists blame to the conflict in Ukraine and the energy crisis.

Real earnings, which reflect the purchasing power of individuals around the world, have decreased most among low-income social groups, according to the organization's research. This is due to the fact that they spend a sizable portion of their income on basics, whose prices have increased significantly as a result of the crisis.

The research notes that real wages in developed economies in the G20 "dropped by 2.2% in the first half of 2022 while rising by 0.8% in developing economies."