Oman edged out its neighbours Qatar, the United Arab Emirates and even Saudi Arabia to secure the first spot in the GCC – and a healthy ninth spot worldwide – in annual average real wage growth in 2016, according to the Global Wage Report 2016/17.
The report was published by the International Labour Organisation (ILO) – a United nations agency dealing with labour issues such as social protection, equal work rights and labour standards – and was further elucidated by British economic analysts, Touch Stone.
Real wages are essentially wages that are adjusted for inflation, or, equivalently, wages in terms of the amount of goods and services that can be bought by a worker in the country.
The report revealed that Oman showed a steady increase of 7.2 per cent in the average annual real wage growth between 2008 and 2015 – a period that followed the global financial crisis, which resulted in a drop in real wage growth in many countries such as the UK, Mexico, Japan, Italy, the Netherlands and Greece.
“These trends show that global real wage growth dropped sharply during the post-2008 economic crisis, recovered in 2010, but has since decelerated,” Guy Ryder, the director-general of the ILO, said in the report.
Egypt came second in the Arab world with an average growth rate of 6.8 per cent and Saudi Arabia in the third place with an average growth of 6.2 per cent.
Meanwhile, Tajikistan topped the charts with an average growth of 14.4 per cent, followed by Zambia with 12.1 per cent.
Sri Lanka and Jamaica came at the bottom in terms of average wages with a fall of 4.2 per cent, followed by Greece, with a 3.6 per cent decline.
The average wage annual growth in Britain was reported to have suffered a fall of one per cent, while it rose in Turkey by four per cent and China by nine per cent.
The average wage growth across all countries was 2.3 per cent a year.
The ILO Global Wage Report is the fifth in a series that now spans over a decade.
The report aims to present comparative data and information on recent wage trends to governments, social partners, academics and the general public.