Wages fell by 0.9 percent in the first half of this year, while prices are on the rise. This is the first time this has happened this century, the International Labor Organization said in a report on Wednesday.
According to the International Labor Organization, this is mainly due to the cost crisis. High inflation and a global slowdown in economic growth are driving down wages around the world. Low-income families are particularly affected.
Low wages vary from country to country. In the European Union, real wages – or wages adjusted for inflation – fell 2.4 percent in the first half of this year. In 2021, wages will continue to rise by 1.3%. On the other hand, wages in Central and Western Asia increased by 2.5%. That was less than a year ago, when it was still 12.4 percent.
According to the International Labor Organization, there is an urgent need for policy measures to improve workers’ living standards.
An increase in the minimum wage and a reduction in value-added tax on essential goods such as food could help, according to the International Labor Organization. The organization also suggests giving vouchers to low-income families to buy essentials.
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