Venezuelans, Argentinians, Vietnamese, Ukrainians, and Indonesians are positioned to make the biggest wage increases next year, according to a new study by Hay Group, out today, while Europeans including the Irish, Greeks, and the Spaniards will see wages rise the least, if at all.
The highest salary rises will be in Latin America where inflation is driving up wages 9% on average, followed by Asia where wages in the region should increase 7.5% on average. North Americans will fare the worst with a rise of 2.9% on average. Average salaries in the Middle East and Africa are set to rise by 5.2%, while Europe’s workers are looking at an average rise of 3.3%.
Salary forecasts for Europe are lower than last year reflecting tough times in countries hit by recessions. Workers in emerging countries in Europe with faster-growing economies such as Ukraine, Russia and Turkey will see the biggest pay increases of 8% or more—compared to a 5.5% gain in Europe this year.
“It’s a buyer’s market, says Ben Frost, global product manager for Hays, referring to companies in hard-hit economies that are cutting back costs including salaries. “Employees in developed markets face a tough year ahead, with pay rises falling behind—or barely outstripping inflation,” he says.
The research is based on the salary expectations of human resources people at more than 20,000 organizations in 69 countries.