Bloomberg News reports that surging inflation is about to put a major glitch in the increase in salaries consequently for the second year in 2023. This was revealed per a new survey that expects about 37% of the nations across the globe to report a hike in real-term salaries.
The region that is likely to be hit the most is Europe. In this continent, the actual salaries, the nominal wage growth minus the inflation rate, are being driven down by an average of 1.5%, per workforce consultancy ECA International.
In the current year, the employees in the United Kingdom have been hit the most since the survey kicked off in 2000. Despite an increase in the nominal pay of 3.5% on average, the wages in real terms dropped by 5.6% due to the 9.1 average inflation. In 2023, these figures are slated to plunge further by another 4%.
In the United States, a real-term slide of 4.5% in the current year is anticipated to be reversed by dropping inflation in the next year, translating into a real-term salary hike of 1%.
The Asian countries constitute eight out of the ten nations forecast to witness the real wage surges, led by India, which was up by 4.6; Vietnam, which rose by 4%; and China, which was up by 3.8%. Brazil witnessed an increase of 3.4%, followed by Saudi Arabia, with a 2.3% bump out of the top 5.
The Regional Director for Asia of ECA International, Lee Quane, revealed that their survey indicates yet another challenging year for workers across the globe in 2023. Just a third of the nations surveyed have been predicted to see an increase in real-term salary, although it is better compared to 22% that experienced a surge in the current year. The average wages dropped by 3.8% in 2022, as per ECA.
The ECA’s Salary Trends Survey is obtained from more than 360 multinational firms in more than 68 nations and cities.
Predicted Real-Term Wage Increase in 2023
The table below indicates the top 10 nations and the predicted real-terms wage increase in 2023.
The table below shows the bottom 5 with their expected decline
