Global slow down in wage growth, despite wage growth in emerging countries. - At an international level, wage growth is increasing at a much slower pace than before the crisis and according to the International Labor Organisation (ILO) 2012/13 report that has just been published, even dipped into the red in developed countries. On the other hand, wage growth is continuing in the emerging economies. ILO director-general, Guy Ryder, explained that this report clearly shows that in many countries, the crisis has had a very significant impact on wages and subsequently on employees, although this impact had been experienced differently. In an effort to underline the importance of these statistics, the ILO provides the following example: in the Philippines, a worker in the manufacturing sector in 2011 earned $1.40 an hour, as opposed to $5.50 in Brazil, $13 in Greece, $23.30 in the US and almost $35 in Denmark. Monthly salaries grew by 1.2% in 2011, a fall compared to 3% in 2007 and 2.2% in 2010. These figures would be even lower if China were excluded from the calculation. The report, however, underlines the enormous disparities between the different countries and regions of the world and the fact that wages tend to grow in areas where economic growth is stronger. Although wage growth has suffered a double dip in the developed economies, where it is expected to be 0% in 2012, throughout the crisis it increased in Latin America, the Caribbean and even more so in Asia. The most significant changes occurred in Eastern Europe and Central Asia where it fell from being in double figures to its extremely hard landing in 2009. In the Middle East, salaries seem to have gone down since 2008, although the data is incomplete. Regional differences are particularly sharp if wage growth between 2000 and 2011 is taken into account. At an international level, wages grew by a little under a quarter. In Asia, they almost doubled. In Eastern Europe and Central Asia they practically tripled but this followed sharp falls in the 1990s. They only grew by 5% in developing countries. There are also considerable differences in wage levels from one country to another. The report also highlights recent studies demonstrating that wages grew at a slower pace than productivity (namely, the value of goods and services produced per worker employed) over recent decades in a majority of countries where statistics are available. This trend is also accompanied by a change in income distribution and indicates that employees have benefited less from the work that they have put in than those controlling the capital, who have benefited much more. The ILO is very critical of this development and Ryder explains that this trend is unwelcome and should be changed. He said that at a social and political level it is obvious that workers and their families are not receiving what they deserve. In the developed economies, productivity in the workplace increased twice as much as wages have since 1999: in the US, hourly productivity in non-agricultural companies grew by around 85%, whilst wages only grew by approximately 35% since around 1980. In Germany, labour productivity has grown by almost a quarter over the past 20 years, whilst wages have remained stable. This is the same in China, a country where wages almost tripled over a ten-year period. Income has fallen, while GDP grew more rapidly than the total wage bill. In conclusion, the report warns therefore that political leaders should avoid “a race to the bottom” on wages, in an effort to become more competitive and find a recession exit strategy. (IL/transl.fl)