💵 Wage gaps decrease globally according to new ILO report

• Wage inequality has decreased in two-thirds of all countries since 2000.
• Low-income countries show the most significant decreases in wage inequality, with an annual decrease between 3.2 and 9.6 percent.
• In high-income countries and upper-middle-income countries, wage inequality is decreasing at a slower pace, with an annual decrease between 0.3 and 1.3 percent.

Global reduction in wage inequality

The International Labour Organization (ILO) presents in its new report "Global Wage Report 2024-25" that wage inequality is decreasing in the majority of the world's countries. Since the early 2000s, the average annual decrease in wage inequality has been between 0.5 and 1.7 percent.

Low-income countries show the most significant decreases in wage inequality, with an annual decrease between 3.2 and 9.6 percent over the past two decades. In high-income countries and upper-middle-income countries, wage inequality is decreasing at a slower pace, with an annual decrease between 0.3 and 1.3 percent.

Strong wage growth in emerging economies

Global real wages show a positive development with growth of 1.8 percent in 2023. The forecast for 2024 points to growth of 2.7 percent, which will be the strongest increase in over 15 years.

Emerging G20 economies show particularly strong results with real wage growth of 1.8 percent in 2022 and 6.0 percent in 2023. This contrasts with the advanced G20 economies which experienced a decline in real wages during the same period.

Regional variation in wage growth

Wage earners in Asia and the Pacific, Central and Western Asia, and Eastern Europe have seen their real wages increase faster than in other parts of the world. The regional variation in wage growth is clear, with emerging economies generally showing stronger development than advanced economies.

Continuing challenges to address

Despite the positive development, significant wage differences still exist globally. The lowest-paid 10 percent earn only 0.5 percent of the global wage bill, while the highest-paid 10 percent earn nearly 38 percent. In low-income countries, nearly 22 percent of wage earners are classified as low-paid.

Women and workers in the informal economy are overrepresented among the lowest paid. One-third of all workers globally are non-wage workers, and in most low- and middle-income countries, the majority are self-employed in the informal economy.