“The continued deterioration of real wages worldwide raises serious questions about the true extent of economic recovery, especially if government rescue packages are phased out too early. Wage deflation deprives national economies of much needed demand and seriously affects confidence,” said Manuela Tomei, director, ILO Conditions of Work and Employment Program, and lead author of the study.
The “Global Wage Report: 2009 Update” will be discussed at the ILO Governing Body in Geneva on 5-20 November as well as at the International Labor Conference in June.
The study calls for measures to maintain employment and avoid the damaging consequences of deflationary wage spirals and worsening working conditions.
The update of the Global Wage Report says “the picture on wages is likely to get worse in 2009” regardless of other economic indicators suggesting an economic rebound.
The report notes that in half of the 35 countries for which figures are available, real monthly wages fell in the first quarter of 2009 compared to their average of 2008, often due to cuts in working hours.
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