Slowdown in global wage growth result of developed countries' protectionism

The average global growth rate or wages dropped from 2.4 percent in 2016 to 1.8 percent in 2017, the lowest since 2008, according to the Global Wage Report issued by the International Labour Organization on Monday. The report also indicates the real wage growth rate of the G20 members has fallen to 0.4 percent in 2017 from 0.9 percent in 2016. Beijing Youth Daily comments:

The weak wage growth around the world is in sharp contrast with the robust economic growth and rosy employment data of some developed economies. The sluggish wage growth can directly affect the world's economic recovery, and employment. No country is immune to it.

The trade protectionism and unilateralism of some developed countries are to blame for this, as they have had a negative impact on many countries' economic restructuring and growth.

Were it not for the rise of protectionism and unilateralism, the world economic recovery would have kept a good momentum. Protectionism and unilateralism threaten to break the global supply chains and suspend further reform of the global trade system, which aims to safeguard free trade.

The crux of the matter is that some countries are trying to resist globalization. They attribute all their domestic problems to free trade and "unfair" trade rules. They go their own way, ignoring all hazards, blindly endorsing protectionism and unilateralism as a panacea for all their ills. Their practice is holding back the recovery of the world economy.

No wonder the Organisation for Economic Cooperation and Development has just lowered its forecast for global economic growth next year by 0.2 percentage points to 3.5 percent, and the International Monetary Fund has reduced its projection for world economic growth next year by 0.2 percentage points to 3.7 percent.

If the wage growth further slumps in the future, it will pull the rug from under the economies of developing countries that pin their growth hopes on consumption and employment, which are highly dependent on strong wage growth.