Across the world, the pressures of growing inflation rates paired with an outlook of economic uncertainties, caused global monthly wages to fall 0.9% in 2022 on average. This marks the first significant drop in global wage growth recorded since 2008.
- In the US: Wage growth has decreased quarter-to-quarter since the beginning of 2022. Although wage growth is beginning to level out, wages continue to sit higher than pre-pandemic levels. Job switchers continue to create pay gaps as almost half the workers who changed jobs were rewarded with a pay raise that exceeded the rate of inflation.
- In the UK: Wages grew faster than expected at the end of 2022, putting pressure on the Bank of England to increase interest rates again. With the surge in inflation, strikes across different industries have increased as workers seek to protect their living standards.
- In EMEA: The region has yet to see a leveling out in wages as inflation rates sit higher in comparison to the US, and they continue to battle challenges with natural gas shortages.
- In APAC: The region is expected to continue to have increased wage growth throughout 2023, with a projected average increase of 4.8% across all markets according to the Total Remuneration Survey. India is projected to have the highest salary increase in 2023, followed by Vietnam.
