The impact of the coronavirus-related health crisis on the global economy has led to a significant drop in wages, which is expected to intensify in the short term, according to the International Labor Organization (ILO).
“Huge downward pressure on wages in the near future”
Published this Wednesday, the last report of theILO highlights a slower decline or increase in wages between January and June 2020 in two-thirds of the countries for which official data were available. Having reached women and low-paid workers of ” disproportionately ”, This trend should increase further in the coming months.
” The consequences of the Covid-19 crisis on the economy and on jobs are expected to lead to enormous downward pressure on wages in the near future », Estimated Guy rider, general manager of the organization. ” Although average wages appear to be increasing in a third of the countries surveyed, this is largely due to the fact that a significant number of the working poor have lost their jobs, and therefore skewed the average. », Specifies the document.
Based on 28 European countries, the report found, without taking into account state subsidies, that wages fell on average by 6.5% in the first six months of the year (8.1% for women and 5.4% for men). According to’ILO, this gap is “above all the consequence of the reduction in hours worked”, which had a greater impact on low-skilled occupations, with an average wage cut of 17.3% for half of the lowest-paid workers.
Implement a “human-centered” recovery strategy
” The growing inequalities created by the Covid-19 crisis could lead to a wave of poverty and social and economic instability that would be devastating “, highlighted Ryder, calling for a recovery strategy ” human-centered “, And the implementation of wage policies” adequate “. ” If we want to build a better future, we also need to address some awkward questions, namely why jobs with high social value, like care and education, are very often linked to low wages.. “
According to the report, “ It is essential that wage policies take into account the sustainability of jobs and businesses, and also address inequalities and the need to support demand “.