The global worker’s wallet is getting a little lighter.
A quarter of the world’s companies, and 40 percent in the United States, plan to freeze salaries this year, said an April 8 report by Reuters.
The data came from a survey of 53 countries by research company ECA International of London. In recession-hit Japan, half of companies plan to freeze salaries, Reuters said.
But there are bright spots. Employees in South America and India will see raises, as will employees in such countries as Lithuania and Ireland but there rises will be among the most modest.
Globally, average salaries should increase 4.7 percent this year, down from a 6.2 percent rise in 2008, the survey showed.
Lee Quane, ECA’s Asia director blamed the economic upheaval, telling Reuters: “Our results show that, globally, companies have revised their forecasts down, on average, by more than a third.”
South America seems to have the best prospects: Companies in Venezuela are set to hand out the biggest pay rises this year, averaging 24 percent and up from 22 percent last year, the report said.
In the United States, pay is expected to rise by just 2.8 percent, Reuters said, and some 40 percent of firms will freeze pay.
Salaries across the Asia-Pacific are likely to rise 4.8 percent, compared with a 6.9 percent rise last year, but a third of companies in the region will freeze salaries, the survey shows. In Western Europe that figure is just 2 percent; Eastern Europe, a 5 percent rise. Overall, 29 percent of percent of European companies plan to freeze salaries this year, the report said.
This article was submitted by Kathleen O’Connor, a contributing writer for Biz2Credit. Biz2Credit is a small business marketplace that provides entrepreneurs with the latest industry news and financial advice. Send all questions to email@example.com.