Women and lower-paid employees have disproportionately borne the brunt of the decrease in wages due to the COVID-19 disaster as their working hours have been lowered, in accordance to the International Labour Organisation’s (ILO) Global Wage Report 2020-2021.
The report, launched on Wednesday, mentioned world wage development fluctuated between 1.6% and a pair of.2% within the 4 years previous the pandemic, that’s 2016 to 2019.
“In the first half of 2020, as a result of the COVID-19 crisis, a downward pressure on the level or growth rate of average wages was observed in two thirds of the countries for which recent data are available; in other countries average wages increased, largely artificially as a reflection of the substantial job losses among lower-paid workers,” the report mentioned.
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The ILO report mentioned the influence of the disaster had been completely different for men and women. The report estimated that ladies employees in a range of European international locations would have confronted an 8.1% discount in wages between the primary and second quarters of 2020, as opposed to 5.4% for males with out cost of wage subsidies.
“Such a discrepancy was mainly caused by reduced working hours, more than by the difference in the number of lay-offs. The wage bill lost as a result of the drop in working hours was 6.9 per cent for women compared to 4.7 per cent for men,” the report said.
Lower-paid employees have additionally been disproportionately hit by the disaster, main to a rise in inequality, it mentioned.
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“Studies have shown that in many countries, reductions in hours worked have impacted lower-skilled occupations – in particular those in elementary work – more than higher-paying managerial and professional jobs,” the report mentioned.
The lowest-paid 50% of employees would have misplaced 17.3% of wages with out wage subsidies, compared to 6.5% of all employees in chosen European international locations, it mentioned.