Business View Caribbean | December 2022

9 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 12 ILO: RISING INFLATION, FALLINGWAGES THREATEN INCREASED POVERTY AND UNREST Source Caribbean New Now, New Editor, Dec 02 Rising inflation has caused a striking decline in real monthly wages in many countries, the International Labour Organization (ILO) said in a report, highlighting the urgent need for policies to prevent further poverty, inequality and social unrest. Global monthly wages fell in real terms to -0.9 per cent in the first half of the year, the study found, marking the first instance of negative growth this century. As a result, the purchasing power of middle-class families has been reduced, while low-income households have been hit particularly hard. TENS OF MILLIONS AFFECTED “The multiple global crises we are facing have led to a decline in real wages. It has placed tens of millions of workers in a dire situation as they face increasing uncertainties,” said Gilbert F. Houngbo, the ILO Director-General, warning of the potential consequences. “Income inequality and poverty will rise if the purchasing power of the lowest paid is not maintained,” he said. “In addition, a much- needed post-pandemic recovery could be put at risk. This could fuel further social unrest across the world and undermine the goal of achieving prosperity and peace for all.”