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Contextually to the pandemic, the International Labour Organization (ILO) has published the report "Wages and minimum wages in the time of COVID-19", which presents an analysis of the global tendencies in wages, the relationship of minimum wages and inequality and the implications of the COVID-19 crisis on wages worldwide.
According to the report, as a result of the COVID-19 crisis, about 345 million full-time jobs were lost in the third quarter of 2020. This is coupled with a general downward trend in the level and/or growth rate of average wages in two-thirds of the countries reviewed by the organisation.
The report reveals that the main part of minimum wage and sub-minimum wage earners is constituted by women, young workers, workers with lower education, rural workers, and workers with dependent children. Most of the workers receiving less than the minimum wage are in the informal economy where they are not protected.
The report suggests that adequate and balanced wage policies achieved through strong and inclusive social dialogue are needed to mitigate the impact of the crisis and support economic recovery. In planning for a new and better “normal” after the crisis, adequate minimum wages could help to ensure more social justice and less inequality
The International Labour Organization (ILO) is a UN agency bringing together governments, employers and workers with the scope to set labour standards, develop policies and devise programmes promoting decent work for all women and men.
The full report is available at the website of ILO as attached below.