Salaries during the crisis: the tendency towards decline and devaluation remains strong
Business and Economics, KazakhstanNo Comment
Translation of publicist’s post (RUS).
For the second year in a row now, the economic crisis has been devaluating real wages. According to mojazarplata.kz, this is the conclusion of experts on international labor, who prepared the “2009 Global Wage Report.”
The International Labor Organization (ILO) report describes the causes of devaluation and predicts future developments in the sphere of labor. The ILO Administrative Council met from November 5-20 in Geneva to discuss it, as well as the Global Employment Pact.
As stated in the report, the decline in wages has been observed since 2008. Among the 53 countries whose statistics are available to the ILO, average real wage growth declined from 4.3% in 2007 to 1.4% in 2008. The revised report emphasizes that despite other economic indicators pointing to an end to the recession, “the situation with wages in 2009 is most likely to get worse.”
“The continuing decline of real wages has generated serious concerns about the actual scale of economic recovery, especially if governments are prematurely abandoning anti-crisis measures. Decline in wages leads to decline in demand, and disrupts consumer confidence, both of which are vital to the economy,” said Manuela Tomei, director of ILO’s Conditions of Work and Employment Program, who coordinated the research.
As for Kazakhstan, official statistics give an average salary of 67,357 tenge, amounting to a real growth of 1.7% compared to last year. The main negative factors, however, like production and price levels dropping do not work in favor of the rising factors, devaluating them in the job market, local and global.
The International Labor Organization is a specialized agency within the UN, whose aim is the advancement of social justice, internationally recognized human rights and labor rights. Founded in 1919, the ILO became the first specialized UN agency in 1946.
The ILO develops international labor norms through conventions and recommendations, setting minimal standards in basic labor laws.
Within the UN system, the ILO has a unique tripartite structure, in which employer and labor unions have an equal voice in working with the ILO’s governing body.
The International Labor Bureau (ILB) in Geneva is the ILO’s secretariat, operative headquarters, and research and publishing center.
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