Stagnant wage growth in developed countries has pulled average global earnings lower and is in danger of dragging economic performance down, according to the International Labour Organization (ILO).
In its latest report published Friday, the ILO said that global wage growth in 2013 slowed to 2 percent, from 2.2 percent the year before. As such, pay growth has a significant way to go before it reaches its precrisis level of around 3 percent.
The average rate was pulled down by stagnant pay in developed countries, the organization said. Annual wage growth in these economies had been around 1 percent since 2006, but fell to just 0.1 percent in 2012, and 0.2 percent in 2013.
Wage growth in developed countries was hit hard by the recent economic crisis, which saw employers become reluctant to increase workers' pay. Over the past few years, as nascent recoveries took hold in major economies including the U.S. and U.K., pay increases have lagged broader economic growth.