emirates7 - A new report from the International Labour Organisation (ILO) reveals that wage inequality has decreased in about two-thirds of countries since 2000. However, significant wage disparities persist globally. The Global Wage Report 2024-25: Is wage inequality decreasing globally? highlights that, on average, wage inequality—measuring the difference between high and low wage earners—has decreased in many countries since the early 2000s, with annual reductions ranging from 0.5% to 1.7%, depending on the method used. The most notable reductions occurred in low-income countries, where the annual decline averaged between 3.2% and 9.6% over the past two decades.
In wealthier nations, wage inequality is declining at a slower pace, with reductions of 0.3% to 1.3% annually in upper-middle-income countries and 0.3% to 0.7% in high-income countries. Despite the overall narrowing of wage inequality, the decrease was more pronounced for high-wage earners compared to those at the lower end of the wage scale.
The report also indicates that global wages have recently grown faster than inflation. In 2023, global real wages rose by 1.8%, with a projected growth of 2.7% in 2024, marking the highest increase in over 15 years. This follows the negative global wage growth of -0.9% in 2022, when high inflation outpaced wage increases.
However, wage growth has been uneven across regions, with emerging economies experiencing stronger growth than advanced economies. While real wages in advanced G20 countries declined for two consecutive years (−2.8% in 2022 and −0.5% in 2023), emerging G20 economies saw positive wage growth both years (1.8% in 2022 and 6.0% in 2023).
Regional variations were also significant. Wage workers in Asia and the Pacific, Central and Western Asia, and Eastern Europe experienced faster real wage growth than other regions.
Despite these positive trends, ILO Director-General Gilbert F. Houngbo emphasized the continuing struggles of many workers facing cost-of-living challenges and high wage inequality. The report reveals that the lowest-paid 10% of workers globally earn just 0.5% of the total global wage bill, while the highest-paid 10% earn nearly 38%. Wage inequality is most severe in low-income countries, where almost 22% of wage workers are considered low-paid.
In wealthier nations, wage inequality is declining at a slower pace, with reductions of 0.3% to 1.3% annually in upper-middle-income countries and 0.3% to 0.7% in high-income countries. Despite the overall narrowing of wage inequality, the decrease was more pronounced for high-wage earners compared to those at the lower end of the wage scale.
The report also indicates that global wages have recently grown faster than inflation. In 2023, global real wages rose by 1.8%, with a projected growth of 2.7% in 2024, marking the highest increase in over 15 years. This follows the negative global wage growth of -0.9% in 2022, when high inflation outpaced wage increases.
However, wage growth has been uneven across regions, with emerging economies experiencing stronger growth than advanced economies. While real wages in advanced G20 countries declined for two consecutive years (−2.8% in 2022 and −0.5% in 2023), emerging G20 economies saw positive wage growth both years (1.8% in 2022 and 6.0% in 2023).
Regional variations were also significant. Wage workers in Asia and the Pacific, Central and Western Asia, and Eastern Europe experienced faster real wage growth than other regions.
Despite these positive trends, ILO Director-General Gilbert F. Houngbo emphasized the continuing struggles of many workers facing cost-of-living challenges and high wage inequality. The report reveals that the lowest-paid 10% of workers globally earn just 0.5% of the total global wage bill, while the highest-paid 10% earn nearly 38%. Wage inequality is most severe in low-income countries, where almost 22% of wage workers are considered low-paid.