NEW DELHI: Signalling a recovery from the Covid-19-induced pandemic, growth in the real wages stayed positive in India for the second consecutive year in 2022, the latest study by the International Labour Organisation (ILO) shows. Along with Turkiye, India is the only country among the G20 grouping that saw positive growth in real wages for the second consecutive year after the pandemic, according to the study titled ‘World Employment and Social Outlook’.
It said a vast majority of G20 countries’ real wages declined because of high inflation, despite having low unemployment and positive employment growth.
At the global level, where data is available till 2023, the study notes that the strongest wage gains were recorded in China and Russia, where labour productivity growth was among the highest in G20 countries. The wages declined the most in Brazil (6.9 per cent), Italy (5 per cent) and Indonesia (3.5 per cent).
The report states that several South Asian countries – including Bangladesh, India and Pakistan – were able to avoid the accelerating inflation seen in other regions, even as they implemented import suppression measures and faced energy shortages, both of which affected their industrial output.
India has contributed to the growth of the South Asian region, thanks to high investment growth and the country’s economic performance which have positively influenced the overall economic dynamics in the region.
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.
Source: Business Standard
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