How crisis affected wages in South Caucasus and Central Asia?

The global economic crisis had a significant impact on the wage growth in the world, the International Labour Organization (ILO) has come to such a conclusion in the 7th edition of its publication - Key Indicators of the Labour Market (KILM).

The wage growth has slowed significantly and was in the world (excluding China) less than 1 percent in 2008 and 2009. In 2006, the wages increased by an average of 2.7 percent, in 2007 - by 2.8 percent, and in 2008, wage growth in the world slowed by 1.5 percent and 1.6 percent in 2009.

At the same time, there are significant regional differences in wage growth. For example, in Asia and Latin America, wage growth has slowed, but remained positive, while in other regions such as Eastern Europe and Central Asia, wage growth has fallen sharply. In 2008, out of 28 economically developed countries, the value of real wages fell by twelve, and in 2009 - in seven countries.

In the post-Soviet countries, the situation with the growth of average wage during crisis and up to this day looks more relaxed as compared to European countries. Starting from 2007, in the South Caucasus and Central Asia, the growth is still recorded, but insignificantly. For example, the average salary in Azerbaijan rose from $272 (in 2007) to $440 in 2011, in Georgia - from $130 to $342, respectively, in Armenia - from $194.5 to $302, in Kazakhstan - from $340 to $602, in Uzbekistan from $200 to $326, in Turkmenistan - from $100 to $248, in Kyrgyzstan - from $86 to $160, in Tajikistan - from $66 to $106.

Thus, according to the CIS Statistical Committee, so far the lowest average wage in these countries was recorded in Tajikistan.

According to the European Statistics Institute, Eurostat, in 2011, in the EU, the residents of the UK receive more than everyone - 3,118 euros per month (gross). In addition, the Netherlands also was named in the list of countries where the average wage is more than 3,000 euros. Germany ranks the third - 2,980 euros. They are followed by the Danes - 2,947 euros. Belgians rank the fifth - 2,784 euros. They are followed by the Austrians (2,746 euros), Irish (2,639 euros), Swedes (2,576 euros) and French (2,462 euros).

South European countries - Italy, Spain, Greece and Portugal - are slightly below average. Wages, for example, in Italy total 2,344 euros, in Spain - 2,260 euros, while in Greece - 2,161 euros.

Less than 2,000 euros is earned by the Portuguese (1,712 euros), Poles (1,320 euros) and Hungary (1,213 euros). The list is completed by Romania and Bulgaria, where the average salary does not reach up to 1,000 euros - 880 and 688 euros respectively. As for the hourly payment, the difference between European countries is also significant.

The first place is occupied by the Danes (22.32 euros per hour) and the last - Bulgarians (4.71 euros per hour). Belgium ranked the second (21.8 euros per hour). According to the study, the Belgians in the average work six and a half hours per day. For comparison, the residents of the United Kingdom have to work longer because they get paid per hour an average of 17.75 euros (gross).


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