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Global Wage
Report
UPDATE 2009
Introduction
1. The present report is an update of the Global Wages Report 2008/09 released
in November 2008. The latter was the fi rst in a new series of reports to be published
every two years to describe and analyse trends in a number of wage indicators, includ-
ing average wages, wage inequality between men and women, differentials between
high and low wages, the share of wages in GDP, and statutory or negotiated mini-
mum wages. The report covered the years 1995-2007, which were characterised by a
generally favourable economic context. Since then, the economic context has changed
dramatically. In light of the global economic downturn, the Members of the ILO signed
the Global Jobs Pact in June 2009, whereby they agreed to consider strengthening
social dialogue, collective bargaining and statutory or negotiated minimum wages
in order to avoid defl ationary wage spirals and to enhance social protection. While
a comprehensive assessment will be provided in the next full Global Wage Report in
2010, the present update already provides some indications of wage trends up to the
second quarter of 2009 in a number of countries around the world.
I. The Economic Context
2. The global crisis: After several years of strong economic growth, the global
economy went into recession in 2009 due to a housing and fi nancial crisis that started
in the U.S. Triggered by a variety of causes, the crisis also highlighted two wage-
related issues. 1 One is the global imbalance in the pre-crisis distribution of profi ts and
wages. Increasing profi ts prior to the crisis have contributed to high levels of liquidity
on fi nancial markets and low rates of i
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