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Global Wage Report 2024-25: Is wage inequality decreasing globally?
- Recent trends in wages
After falling to -0.9 per cent in 2022, global real wage growth recovered in 2023, marking an increase of 1.8 per cent. Preliminary data for the first two quarters of the year indicate that global real wage growth recorded a 2.7-per-cent increase in 2024, the largest gain in more than 15 years. When looking at regional level data, real wage growth continues to be heterogeneous, with average wages increasing faster in Asia and the Pacific, Central and Western Asia, and Eastern Europe compared to the rest of the world.
The report finds that, on average, labour productivity in high-income countries increased more rapidly than real wages over the period 1999？2024 (a total of 29 per cent versus 15 per cent). In 2022 and 2023, more countries than usual adjusted the level(s) of their minimum wage(s), indicating that minimum wage policies were generally responsive to the increase in inflation. However, in most cases, the changes were not sufficient to compensate minimum wage recipients for the increase in the cost of living.
- Trends in labour income inequality in the twenty-first century
Part II of the report provides global, regional and country-level analyses of wage and labour income inequality over a period spanning much of the first quarter of the twenty-first century. Using recent survey data on hourly wages for 82 countries, which together account for about 76 per cent of the global population of wage employees, the report shows that the level of wage inequality differs significantly across countries, with low- income countries displaying, on average, the highest level of wage inequality and high-income countries the lowest.
- Moving forward
While different measures of inequality support the finding that wage and labour income inequality have declined in a majority of countries since the beginning of the century, data challenges in measuring and estimating the change in inequality call for more research to help confirm this finding.
After falling to -0.9 per cent in 2022, global real wage growth recovered in 2023, marking an increase of 1.8 per cent. Preliminary data for the first two quarters of the year indicate that global real wage growth recorded a 2.7-per-cent increase in 2024, the largest gain in more than 15 years. When looking at regional level data, real wage growth continues to be heterogeneous, with average wages increasing faster in Asia and the Pacific, Central and Western Asia, and Eastern Europe compared to the rest of the world.
The report finds that, on average, labour productivity in high-income countries increased more rapidly than real wages over the period 1999？2024 (a total of 29 per cent versus 15 per cent). In 2022 and 2023, more countries than usual adjusted the level(s) of their minimum wage(s), indicating that minimum wage policies were generally responsive to the increase in inflation. However, in most cases, the changes were not sufficient to compensate minimum wage recipients for the increase in the cost of living.
- Trends in labour income inequality in the twenty-first century
Part II of the report provides global, regional and country-level analyses of wage and labour income inequality over a period spanning much of the first quarter of the twenty-first century. Using recent survey data on hourly wages for 82 countries, which together account for about 76 per cent of the global population of wage employees, the report shows that the level of wage inequality differs significantly across countries, with low- income countries displaying, on average, the highest level of wage inequality and high-income countries the lowest.
- Moving forward
While different measures of inequality support the finding that wage and labour income inequality have declined in a majority of countries since the beginning of the century, data challenges in measuring and estimating the change in inequality call for more research to help confirm this finding.
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