Global wage report 2020-21: wages and minimum wages in the time of COVID-19

Global Wage Report – the seventh in the series – presents the emerging empirical evidence
of the effects of the crisis on wages. Part I of the report documents a downward trend in the level and/or
growth rate of average wages in two thirds of the countries for which data from 2020 were available.
Ten years ago the second report in this series looked at wage policies at the time of the global financial
and economic crisis.2 This time – much more so than during the 2008–10 period – governments have
taken unprecedented action to counteract the economic and labour market impact, including through
temporary wage subsidies, extending social protection and providing support to keep businesses
afloat. Likewise, central banks across the world have intervened with expansionary monetary policies
to stimulate economies. These measures have allowed millions of wage earners to retain all or part of
their incomes.Despite these measures, the economic and employment consequences of the COVID-19 crisis are likely
to exert further downward pressure on wages in the near future. Hence, if economies are to return to
a path towards sustained and balanced economic growth, wage developments will need to take into
account the need both for incomes and aggregate demand to be supported and for enterprises to remain
successful and sustainable. Constructive social dialogue will be key to success in achieving this goal.