Real wage growth positive in India for second consecutive year: ILO study

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Along with Turkey, India is the only country that saw positive growth in real wages for the second consecutive year after the pandemic struck in 2020

Report also mentions that India has contributed to the growth of the South Asian region, thanks to high investment growth (Photo: Pexels)

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Signalling a recovery from the Covid-induced pandemic, growth in real wages stayed positive for the second consecutive year in 2022, the latest study by the International Labour Organisation (ILO) shows.

Along with Turkey, India is the only country that saw positive growth in real wages for the second consecutive year after the pandemic struck in 2020. In the vast majority of G20 countries, real wages declined because of high inflation despite having low unemployment and positive employment growth, the study titled ‘World Employment and Social Outlook’ said.

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Meanwhile, at a global level where data is available until 2023, the study mentions that the strongest wage gains were recorded in China and the Russian Federation, where labour productivity growth was among the highest in G20 countries. In contrast, wages in Brazil (6.9 per cent), Italy (5 per cent), and Indonesia (3.5 per cent) declined the most.

On the inflation front, the report mentions that a number of South Asian countries – including Bangladesh, India, and Pakistan – implemented import suppression measures and face energy shortages, both of which affected industrial output even as they were able to avoid the accelerating inflation seen in other regions.

Besides, the report also mentions that India has contributed to the growth of the South Asian region, thanks to high investment growth, and India’s economic performance has positively influenced the overall economic dynamics in the region.

However, the report indicates that the global unemployment rate is expected to reach 5.2 per cent in 2024 from 5.1 per cent in 2023, primarily due to increased joblessness in advanced economies. Also, the labour force participation rates are expected to decline across all income groups with a more pronounced decline among women.