Mon, Feb 04, 2013 - Page 13 News List

Staff not sharing in GDP: CEPD

By Camaron Kao  /  Staff reporter

The Council for Economic Planning and Development (CEPD) said on Friday that the small share of the nation’s GDP growth receieved by employees was the main reason behind their stagnant wages in recent years.

The council said that employee salaries accounted for a record 51.7 percent of GDP in 1990, but the percentage — which is dubbed the “labor share” by the International Labour Organization (ILO) — had declined to 44.6 percent in 2010, lower than the level of both developed and developing countries, as well as emerging economies.

The latest ILO Global Wage Report issued on Dec. 7 last year showed that the average labor share was 75 percent among developed countries between 1970 and 2007. The percentage dropped to 65 percent in 2010.

Among developed countries and emerging economies, the percentage of labor share of GDP was 62 percent from 1970 through 2007.

The labor share dropped to 58 percent in 2010, the report showed.

Meanwhile, according to the ILO and the Directorate-General of Budget, Accounting, and Statistics (DGBAS), the growth of wage levels in Taiwan from 2000 through 2011 was lower than in many other countries, if the influence of inflation is not considered.

The ILO report showed that the average wage level around the world rose 22.7 percent from 2000 through 2011, while according to the DGBAS, the nation’s wage levels decreased by around 2.64 percent during the same period.

On a regional basis, average wage levels in Asia rose 94.9 percent from 2000 through 2011, the ILO report said.

Among developed countries, wage levels increased 5 percent from 2000 through 2011, it said.

In 2011, average growth of wage levels worldwide was 1.2 percent, down from 2.1 percent in 2010 and lower than the 3 percent seen in 2007, before the global financial crisis hit in 2008.

If China is not included in the statistics, the ILO said the growth of global wage levels was only 0.2 percent in 2011, compared with 2010’s 1.3 percent and 2007’s 2.3 percent.

The growth of wage levels in Taiwan was 1.29 percent in 2011, compared with 4.34 percent in 2010, the DGBAS said. The government did not make 2007’s figure available.

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