Tag Archives: wages

2018 Projected Global Wage Growth

12 Jan

In this post, we look at 2018 projected global wage growth. Why?

For many (most) of us, salary/wage data acts as a useful tool. With such data, we can better judge our value to the company and for our job sector. As these links show:

 

2018 Projected Global Wage Growth

In 2018, wage growth will be mixed. And this goes for the United States and other OECD countries. The Organization for Economic Cooperation and Development consists of 35 nations. As it states, its mission “promotes policies that improve economic and social well-being of people around the world.”

Recently, Statista summarized the results of research on OECD wages in 2018 [NOTE: the wage projections reflect the impact of inflation. This results in the real rate of change. In the U.S., we measure real wages by studying both wages and the consumer price index.]:

“In analyzing OECD data, London-based Trades Union Congress (TUC) prepared forecasts for wage growth in developed economies for 2018. And it’s good news for a number of Eastern European nations. With Hungary, Latvia, and Poland expected to see the largest increases at 4.9, 4.1, and 3.8 percent.”

“But tougher times await those in the soon-to-be-divorced U.K. In that case, real wages will shrink by 0.7 percent. The U.S. appears on the positive side of the chart. A 1.2 percent real jump upwards is predicted.”

As we can learn from the Statista chart shown below.

  • For 2018, TUC offers wage projections for 32 OECD countries.
  • Of those 32 countries, 28 will have real wage growth in 2018.
  • However, TUC projects that just six OECD countries will show wage growth of at least 3 percent in 2018.
  • In 2018, the U.S. will rank 13th of the 32 nations for wage growth.
  • Besides in the U.K., wages will decline in Spain and Italy. And they will be flat in Switzerland.

 
2018 Projected Global Wage Growth - Statista chart
 

Why Aren’t Wages Rising Faster?

4 Mar

Positive performance of the Gross Domestic Product? Check. Unemployment rate still dropping? Check. Energy prices down from last year? Check. (Despite some recent price increases). So, why haven’t U.S. wages risen faster and higher than they have?

Are wages finally ready to have a meaningful uptick? According to Knowledge@Wharton:

“An early spring looks in store for workers with unexpected good news from the U.S. Labor Department: In January, unemployment clocked in at 5.7%, down from a post-financial crisis high of 10% in October 2009. Over the last three months, employers hired at the fastest pace since 1997. Another positive sign: After years of stagnant wage growth, average hourly earnings rose by 0.5%, the biggest gain in six years.”

“Though small, this uptick in wage growth raises the question of whether economic recovery might finally bring higher pay along with it. In February, Wal-Mart Stores announced a pay raise for its U.S. workers to $10 an hour, above the $7.25 an hour federal minimum wage, and other companies, such as Starbucks, Panera Bread, and Aetna have also raised wages at the lower rungs. That’s good news, when average real wage growth has hovered around zero among developed countries since the end of the financial crisis, according to a 2014 report by the Organisation for Economic Co-operation and Development, the International Labor Organization and the World Bank Group. G-20 countries overall have averaged only 1% to 2% real wage growth a year, most due to wage increases in China, according to the report.”

“Workers should remain skeptical of any dramatic change afoot on the wage front, however. The economic recovery taking hold at least in the U.S., if not in other major developed economies, may enable workers to claw back jobs, but dramatically higher pay is a much more tenuous prospect. The availability of still more U.S. workers on the sidelines ready for hire, along with an eager supply outside the U.S., continued displacement of workers via technology, and weaker worker protections in the law will allow employers to hold the upper hand for some time to come, experts say.”

Click the image to read more.
 

 

Median U.S. Wages Not Looking So Great

24 Oct

Although the U.S. unemployment rate has come down in the years following the Great Recession, wages have not really bounced back in real terms (taking inflation into account). And, according to the Bureau of Labor Statistics, the gap between the haves and have nots has steadily increased. This is NOT good news for marketers who appeal to middle-income consumers, as well as those selling non-necessities.

As reported by  for the New York Times:

“The typical American family makes less than the typical family did 15 years ago, a statement that hadn’t previously been true since the Great Depression. Even as the unemployment rate has fallen in the last few years, wage growth has remained mediocre. Last week’s jobs report offered the latest evidence: The jobless rate fell below 6 percent, yet hourly pay has risen just 2 percent over the last year, not much faster than inflation. The combination has puzzled economists and frustrated workers.”

“The great wage slowdown, or the end of it, will help set the tone for American life in the coming decade. It has already done so in the century’s first 15 years, causing widespread unhappiness with the country’s direction and leading voters to shift partisan directions multiple times. The political turmoil isn’t likely to end until the economic reality changes.”

Click the NYT chart to read more.
 
Income Decline
 

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