While many communities across America are striving to increase worker compensation, arguably, the best way to increase wages is through rapid economic growth. A survey conducted by management consultancy Korn Ferry Hay Group determined that workers in much of the world can expect pay increases next year.
As reported by CNNMoney, the largest average wage increases will go to Chinese and Indian workers primarily due to rapid growth rates in both nations and accompanying increases in demand for human capital. The survey indicates that Chinese companies are planning to supply employees with an eight percent boost in pay next year on average.
Once one adjusts for predicted Chinese inflation, real wages will increase by nearly six percent. Employees in India can expect average raises above ten percent -- once one deducts anticipated inflation that translates into five percent real wage growth.
Workers in the G7 nations, a group that includes the U.S., the U.K., France, Italy, Japan, Canada and Germany, can expect average wage increases between two and three percent. Among these seven nations, the U.S. is expected to experience the largest average pay raises – three percent in nominal terms and one point four percent in inflation adjusted terms.
