{"id":288174,"date":"2018-11-29T18:00:08","date_gmt":"2018-11-29T16:00:08","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=288174"},"modified":"2018-11-29T17:30:38","modified_gmt":"2018-11-29T15:30:38","slug":"this-is-how-wages-in-south-africa-have-grown-compared-to-other-countries","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/288174\/this-is-how-wages-in-south-africa-have-grown-compared-to-other-countries\/","title":{"rendered":"This is how wages in South Africa have grown compared to other countries"},"content":{"rendered":"

Global wage growth in 2017 fell to its lowest rate since 2008, far below levels before the global financial crisis, according to a new International Labour Organisation (ILO) report.<\/p>\n

The ILO Global Wage Report 2018\/19<\/a>\u00a0examines the evolution of real wages around the world, giving a unique picture of wage trends globally and by region. The findings are based on data from 136 countries.<\/p>\n

The report finds that in real terms – adjusted for price inflation – global wage growth declined to 1.8% in 2017 from 2.4% in 2016.<\/p>\n

In analysing wage growth, the report finds that in advanced G20 countries, real wage growth declined from 0.9% in 2016 to 0.4% in 2017. By contrast, in emerging and developing G20 countries, real wage growth fluctuated between 4.9% in 2016 and 4.3% in 2017.<\/p>\n

“It’s puzzling that in high-income economies we see slow wage growth alongside a recovery in GDP growth and falling unemployment. And early indications suggest that slow wage growth continues in 2018,” said ILO director-general Guy Ryder.<\/p>\n

“Such stagnating wages are an obstacle to economic growth and rising living standards. Countries should explore, with their social partners, ways to achieve socially and economically sustainable wage growth.”<\/p>\n

In the last 20 years, average real wages have almost tripled in emerging and developing G20 countries, while in advanced G20 countries they have increased by just 9%, the report showed. But, in many low- and middle-income economies, wage inequality remains high and wages are frequently insufficient to cover the needs of workers and their families.<\/p>\n

Among advanced economies, the Republic of Korea leads, where wage growth has increased most rapidly and by a total of 15% in the period 2008\u201317. It is followed in second place by Germany.<\/p>\n

Australia, the US, France and Canada have also posted positive wage growth in the period leading up to 2017, although with more modest aggregate outcomes.<\/p>\n

Italy and the UK have suffered losses in real wage growth of about 5% over the period 2008\u201317, while in Japan, overall wage growth over the period has been close to zero, the report said.<\/p>\n

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The report showed the marked and continuing rising trajectory of China among emerging economies, where average real wages almost doubled between 2008 and 2017. In fact, all emerging G20 countries except Mexico experienced significant positive growth in average real wages
\nover this period.<\/p>\n

Wage growth continues in Saudi Arabia, India and Indonesia, whereas in Turkey it declined to around 1% in 2017.<\/p>\n

South Africa and Brazil have experienced positive wage growth starting from 2016 after a phase of mostly zero growth during the period 2012\u201316.<\/p>\n

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Read: Here’s how much poorer South Africans are right now compared to 10 years ago<\/a><\/strong><\/p>\n

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Over a 10 year period, through to the end of 2017, the report shows how poorly South Africa has performed, compared to its peers in Sub-Saharan Africa.<\/p>\n

It also showed how the country’s nominal wage has increased over the last five years:<\/p>\n