OECD: Superstar Firms To Blame For Subdued Wage Growth
The OECD (Organisation for Economic Cooperation and Development) have recently stated that rapidly-growing tech firms are taking an increasing share of national income in many countries. This results in workers’ overall wage growth being repressed.
A carried out study also showed that firms such as Google and Amazon, share less of their profits with their employees, and instead channel more of the funds to shareholders and to top management.
Even though unemployment in most OECD countries has returned to pre-crisis levels, wage growth unfortunately has not, despite many labour markets becoming much more tighter according to the OECD’s annual Employment Outlook.
Following the 2008-2009 global economic crisis is that many workers were forced to accept low-pay jobs afterwards, weighing on overall wage growth.
According to the OECD, another indicator was the total productivity gains in most economies no longer translating into higher wages for all employees as they used to do in the past.