this fees almost in spain 5% lowerin terms of purchasing power, Pandemic. The biggest inflation For four decades it has been hurting the pockets of Spaniards and almost every worker in the world. So much so that, according to a report by the International Labor Organization, there has been a decline in real wages worldwide for the first time ever in the 21st century (ILO) was released this Wednesday. warns itself that it will devaluate. purchasing power threatens to provoke or aggravate recessions economic.
Prices that do not stop rising and wages that rise much more slowly. This is the jobs summary for the first half of 2022 for the vast majority of Hispanics, who are now almost 5% poorer than before the covid outbreak. this OECD Monthly figures from the CPI and collective agreements confirm this, and now the ILO is joining in with its capacity to open up focus and verify that workers around the world are paying for the current escalation with their purchasing power. your prices
The effects of the inflationary spiral are not affecting everyone equally, and Spain is one of the worst-hit states among the most advanced economies in the pre- and post-covid photo. Salaries in countries G20 on average it fell by 2.2%, half of that in the Spanish sample. Meanwhile, payrolls in developing countries continued to grow overall – 0.8% – but three times lower than before covid.
“The fight against the deterioration of real wages […] It can be an effective way to reduce the likelihood or intensity of recessions “In all countries and regions,” said Rosalia Vazquez-Alvarez, one of the authors of the report. 2023 will be an exercise for Spain economic slowdown and both the Government and different educational institutions are lowering their expectations for next year. In this sense, unions insist that a prolonged wage devaluation threatens domestic consumption and may hinder GDP growth, in line with the ILO.
Minimum wage to be determined in December
fight to decide monthly salary minimum 2023 kicks off in Spain and is set this December. The government plans to release the expert report, which will determine the range in which the increase will move, to the public next week. It was originally planned to rise between 1.012 Euros and 1.047 Euros gross (in 14 payments), but given current inflation levels, the figure the Government will be betting will be higher, as agreed by the Department of Labor. Unions want to achieve results 1.100 € and employers have yet to decide.
Raising the minimum wage to levels sufficient to combat price increases is one of the recommendations of the ILO to alleviate the current crisis in low-income households. “Adequate adjustment of minimum wage rates can be an effective tool,” they point out from the international organization. They also point to bonuses for families with lower salaries or no earned income, similar to paychecks. 200 euros already approved by the government. According to the latest data from the EPA, there are 977,400 households in Spain where all members are unemployed.
And the overall rise in prices is fattening more intensely among the most vulnerable. According to ILO data, the cost of living in the lowest-income households increased by 15 percent, while the wealthiest increased by 13.5%, relatively. “[Esta situación] “It has put tens of millions of workers in a difficult position, facing increasing uncertainty.” Gilbert F Houngbo. “Furthermore, the much-needed recovery after the pandemic may be compromised,” he insisted.