Real wage growth drops in Bangladesh: ILO

Apparel Online - - BEYOND INDIA -

Not­with­stand­ing the fact that Bangladesh is eco­nom­i­cally de­vel­op­ing by leaps and bounds so much so that the coun­try is ex­pected to soon grad­u­ate into a de­vel­op­ing na­tion from the cur­rent Least De­vel­oped Coun­try, the growth of real wage in the coun­try has de­clined in 2017 af­ter record­ing growth in real wage for two con­sec­u­tive years.

The Global Wage Re­port 201819 pub­lished by In­ter­na­tional Labour Or­gan­i­sa­tion (ILO) re­cently un­der­lined that the coun­try’s wage growth in real terms (ad­justed for price in­fla­tion) de­clined to 3 per cent in 2017 from 3.6 per cent in 2016. In

2015, the real wage growth in Bangladesh was 3.5 per cent while it was 2.4 per cent in 2014. The re­port fur­ther un­der­lined that Bangladesh achieved 3.4 per cent real wage growth in last 10 years (2008-2017), which was lower than the re­gional (South­ern Asia) me­dian growth of 3.7 per cent in the pe­riod. “Global wage growth in 2017 was not only lower in 2016, but fell to its low­est growth rate since 2008, re­main­ing far be­low the lev­els ob­tained be­fore the global fi­nan­cial cri­sis,” stated the re­port, which has been pre­pared based on data col­lected from 136 coun­tries. The study fur­ther re­port­edly found that there are wide vari­a­tions among coun­tries, with the mean hourly gen­der pay gap, for ex­am­ple, rang­ing from 34 per cent in Pak­istan to 10.3 per cent neg­a­tive in the Philip­pines (which would be in­ter­preted to mean that in this coun­try, women earn on av­er­age 10.3 per cent more than men). As per the re­port, in Bangladesh the fac­tor-weighted mean hourly wage gen­der pay gap was en­cour­ag­ing (-4.7 per cent). “Al­though there are some vari­a­tions among coun­tries, it seems that in many coun­tries the gen­der pay gap widens grad­u­ally from the younger to the older co­horts. What is also strik­ing is that in all but four of the coun­tries (Aus­tralia, Bangladesh, China, and Rus­sian Fed­er­a­tion), the gen­der pay gap is pos­i­tive at the point of en­try into the labour mar­ket,” the re­port read.

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