WorkforceTrends

Report

2025|Issue2

Introduction

Thegloballabormarketisundergoingsignificanttransformations

drivenbyacombinationoftechnologicaladvancements,

demographicshiftsandeconomicuncertainty.Nearlytwoyearsafterthepandemicended,disparitiesbetweendevelopedandemergingmarketsarebecomingmorepronounced.High-incomecountriesareexperiencingtightlabormarkets,whilelow-andmiddle-income

countriesfaceelevatedunemploymentratesdrivenbyahighpercentageofeducatedyouth,skillsmismatchandeconomicslowdown.

TherecentUStariffsandeconomictensionswithCanada,MexicoandChinacouldalsohaveseveralsignificantimpactsonthelabormarket.Thesetariffswilllikelyincreaseproductioncostsfor

businessesthatrelyonimportedgoods,leadingtohigherpricesforconsumersandpotentiallyreducingdemandforcertainproducts.Thiscouldresultindecreasedproductionand,consequently,job

lossesinaffectedindustries.

RetaliatorytariffsfromthesecountriescouldalsoharmUSexports,furtherimpactingindustriesthatrelyoninternationaltrade.The

overalleffectcouldbeareductioninGDPandemployment,with

estimatessuggestingalossofaround

142,000

full-timeequivalentjobsduetothetariffsimposedduringthe2018-2019tradewar.Inthelongrun,thesetradetensionsmightalsodiscourageinvestmentandinnovation,asbusinessesfaceuncertaintyandhighercosts,

leadingtoaneconomicslumpwhichwilllimitfuturejobcreation.

TheWageIssue

InthisissueoftheWorkforceTrendsReport,weprovideacomprehensiveanalysisofwagegrowthtrendsacrossNorthAmerica,LatinAmerica,EuropeandtheAsia-Pacificregion,highlightingsignificantregionaldisparitiesandtheeconomicfactorsthatareinfluencingthesetrends.

Wealsodeepdiveintopaytransparencyandcoverrecentlegislationthataimstopromotefairnessandequityintheworkplace,withnewlawsenactedintheUK,EuropeanUnionandseveralothercountries.

Andfinally,wesharerecruitmentinsightsfromAGS’StrategicSupplierswhorevealthelatesttrendsintalentacquisition,emphasizingtheimportanceofcompetitiveratesandflexibleworkbenefitswhichcontinuetobethetoptwomostimportantfactorswhenattractingandretainingtoptalent.

WagesinNorthAmerica

In2024,wagesgrewinNorthAmericaastheeconomy

continuedtogrowatahigherpacerelativetotherestoftheworld.Wagesarelikelytocontinuestronggrowthin2025,as

inflationisexpectedtoriseagain,butcouldbedampenedbyacontinuallyweakeningrealeconomy.

UnitedStates

In2024,USaveragehourlyearningsgrewnominallyby

$1.40,or4.5%

.Thisisaslight

uptickfrom2023,whenaveragehourlyearningsgrewat4.3%,andareturntothe4.5%

Source:BLS

averagehourlyearningsgrowthseenin2022.Theaveragehourlyearningsgrowthin2024wasdrivenbystrongoveralleconomicgrowthintheUSandwagescontinuingtocatchuptostabilizingprices.Whilethelabormarketwasprimarily

drivenbyhealthcare,education

andgovernmenthiringin2024

,thesesectorsdidnotprimarilydrivewagegrowth.

Regionally,

wageshavegrownmostinhigh-cost

markets

(e.g.,SanFrancisco,NewYork,Boston),asthesemarketshavehighinflationandarehometothetop-payingcompaniesintheworld.Wagesinhigh-costmarketshavegrown

44%since2019

andhavecontinuedtobecomeincreasinglyuntetheredfromthegrowthofmedium-andlow-costmarkets.

Medium-cost(e.g.,Chicago,Denver,Cleveland)andlow-cost(e.g.,Tampa,OklahomaCity)

labormarkets

havenotseenthesamewagegrowthashigh-cost

markets

.From2019to2024,medium-costmarkets

havegrownby

32%,whilelow-costmarketwages

havegrownby28%

.Wagegrowthintheseareashasbeendrivenbyemployershiringmoreinthese

marketsastheylooktoloweroveralllaborcosts.Thistrendislikelytocontinuetohelpdrivewagegrowthinthecomingyearsinthesemarkets.

The

sectorsthatsawthemostgrowth

inaveragehourlyearningswereprofessional

andbusinessservicesat5.1%;otherservices(e.g.,socialassistance,emergency

services,housing)at4.7%;andinformationat4.6%.Sectorsthatsawthe

leastaverage

hourlyearningsgrowth

includeminingandloggingat2%,wholesaletradeat2.3%;andtransportationandwarehousingat2.5%.Thesesectorslostjobsorhired

minimallyin2024,leadingtolowersectoralwages.

ALookatAGS’MajorLaborCategories

LookingatAGSlaborcategories,nationally,

engineeringjobsledmedianweeklynominalearningsgrowth

in2024

,cominginat4.9%.Thiswastheonlylaborcategorytoseehigherwagegrowththan2023,whenearningsgrewat2.9%.Thislowearningsgrowthin2023ledtoabouncebackinwagegrowthin2024.Earningsgrowthisalsobolsteredbya

reducednumberofengineeringgraduates

andholesleftinthe

workforceby

retiredengineers

.Earningsmaycontinuetoclimbin2025,but

tariffs

and

reduced

manufacturingactivity

mayleadtoreducedgrowth.

Scientific/healthcarejobs

experienced4.5%weeklynominalearningsgrowthin2024,downfrom5.3%in2023.Continually

stronghiringinthehealthcaresector

drovewagegrowthin2024,astheUS

continuestoinvestin

careforanagingpopulation

and

expansionforlow-incomepopulations

.Earningscouldcontinuetogrowatastrongpacein2025,but

loomingcutstoMedicaid

andothersocialservicesbringthatgrowthintoquestion.

Medianweeklynominalearningsfor

lightindustrialjobs

grewat2.9%overthecourseof2024.GrowthinweeklynominalearningshasfallensharplyforlightindustrialJobs,downfrom10.2%in2022and5.2%in

2023.Whileworkershortagespersistinthelightindustrialspace,layoffshavebeencommoninthesector.

Manufacturinglost87,000jobsin2024

evenastheUSFederalGovernmentmade

significantinvestments

sector.

intotheContinuedlayoffs,

reducedmanufacturingactivity

and

tariffs

havethepotentialtodragonlightindustrialwagegrowthin2025.

ITweeklynominalearningsgrowth

wasdownin2024,at1.6%.In2022,earningsgrewat7.8%,followedby5.6%in2023.Thetechsectoroverallhasseencoolingoverthepasttwoyears,exceptforAI,whichstill

space

driveshiringinthe.

Layoffs

andslowhiring(minusAI)causedlargevariationsinsectoralunemployment,withlarge

differencesintheavailabletalentpoolcontributingtoslowearningsgrowth.AIroleswillcontinuetoseehigherwagegrowthin2025,butastheoveralllabormarketcontinuestoslow,expectwagesformoretraditionalrolestogrowcomparablyto2024.

Professionalservicesjobs

sawalargedeclineinweeklynominalearningsgrowthin2024.Medianearningsfellby5.8%fromahighof10%in2023,reversingjustoverhalfoftheearningsgainsmadein2023.Whilethe

overallsectorwagesledgrowthin2024

,AGScategoryjobslostin2024.Slowhiringforprofessionalservicerolescoupled

withthelargeearningsincreasein2023,haverebalancedwagesforthesejobsin2024.Expectearningstoreboundin2025,butmuchlowerthanthehighsof2023.

SourceBLS*BLSnominalwageearningsisbasedonfull-time,part-timeandcontingentworkerhires

2025Outlook

Realwages,whichrefertothepurchasingpowerofanindividual’searnings,adjustedforinflation,

grewby1%

in2024asannualizedinflation

fellto3.2%

fortheyear.

Thisgrowthisnearidenticalto2023,

whichgrewat1%

with4.1%annualizedinflation

.Realwagesarestillcatchinguptothe

-2%loss

in2022duringan

annualized8%

inflationrate

.In2024,nominalwagesgrewwhilerealwagesfellslightlyaspricesstartedtoriseagain.

TherearealreadywarningsignsthatUSinflationislikelytoriseagainin2025.TheFederalReservehasindicatedthatitwasmovingitsfocusawayfromthelabormarket,

backtopricestabilityin2025

,asincreasesinthe

ConsumerPrice

Indexand

ProducerPriceIndex

aresignalinghigherinflation.Inflationexpectationsarecurrentlyattheir

highestsince1995

,duetoagrowingeconomicconflictbetweenthe

partners

USandtrading.Inflationwillbealargefactorinthedirectionandintensityofwagegrowthin2025.

Therearemanydifferentmovingmetricsinthelabormarketandeconomyin2025,but

wageswillbedeterminedbyoveralleconomicgrowth,unemploymentandinflation.Belowareprojectionsofwagetrendsbasedonthethreeaforementionedfactors:

ItislikelythattheUSwillseedecreasedgrowthfromanalreadyweakeningreal

economy,compoundedbytariffs,governmentspendingcuts,generaluncertainty

and

Chinacontinuallygainingmoremarketshareacrosstheworld

.Unemploymentislikelytoriseasmanufacturing,healthcare,educationandgovernmentsectorswill

havethehardesttimeweatheringtariffsanddecreasedgovernmentspending.

Decreasedgrowthwouldusuallyputadamperonwagegrowth,butinflationislikelytocontinue,astariffspushpricesontoAmericanproducers/sellers,whothenpasspricesontotheconsumer.Thiswouldcreateaperiodofstagnation,wheregrowthweakens,unemploymentrises,butwagescontinuetorisewithprices.Inthis

scenario,theFederalReserveislikelytoraiseinterestratestodestroydemandandfightinflation,leadingtoweakerlabormarketconditions.

Canada

In2024,averagehourlyearningsinCanadagrewnominallyby

1.23CAD,or4.4%

.Thisgrowthisweakercomparedtothepasttwoyears,with2022seeinga

4.7%

averagehourlyearningsincrease,and2023seeing

5.3%

.OverallaveragehourlyearningshaveslowedinCanadaaslabormarketconditionshavedeterioratedandoveralleconomicgrowthhas

slowedoverthecourseof2024

.

SectorsthatledCanadianaveragehourlyearnings

growthin2024includenaturalresources,agricultureandrelatedproductionat7.9%;naturalandappliedsciencesat5.6%;andbusiness,financeandadministrationat5%.

Sectorsthatsawtheleastaveragehourlyearningsgrowth

in2024werearts,culture,recreationandsports,cominginat0.6%;manufacturingandutilitiesat1.7%;andsales/servicesat2.5%.

Wagegrowthwasstrongestinlargemetropolitan

areassuchasMontrealorQuebecCity,butalsowasstronginsmallercitiessuchasWindsor.Middle-of-the-country

providencesandremoteareassawtheleastamountofwagegrowth.

ALookatAGS’MajorLaborCategories

ForAGSlaborcategories,

professionalservicejobshadthe

largestaveragehourlyearningsincrease

at4.3%.Thisisdownfroma5.2%growthratein2023.Muchofthisisledby

finance/realestateandprofessional,scientificandtechnicaljobgrowth,twosectorsthataddedjobsatarateof2.9%and3.4%respectivelyin2024.Itappearsthatjobgrowthinthesesectorswillcontinuetobestrongin2025,soexpect

professionalserviceshourlyearningstogrow.

Followingprofessionalserviceswasthe

lightindustriallabor

category.

Hourlyearningsgrewat3.8%in2024,upfrom

2.1%in2023.Whilethemanufacturingsectorlostjobsin

2024,overall,thegoodsproducingsectorisup,with

strongercontributionsfromoil/gasandwarehousingsectors

.In2025,thelightindustriallaborcategory’swagegrowth

couldbethreatenedby

potentialtariffsfromtheUS.

Manufacturingcouldlosemorejobsas

Americancompanies

re-shoreoperations

toreducetariffcosts,leadingtoweakerwagegrowth.

Scientific/healthcarelaborcategoryjobs

sawanaveragehourlyearningsgrowthof2.4%in2024,downfrom5.2%in2023.In2023,Canadaspent

GDP

12.1%ofitstotal

onhealthcare

,withwagesbeingthesinglelargestcostinthesystem.Evenwithincreasedhealthcarespendingin2024,wagegrowthdropped.Averagehourlyearningsgrowthin2025willlikelymirror2024.

Theengineeringlaborcategorystruggledin2024

--onlyachievinganaveragehourlyearningsgrowthrateof0.5%,downfromahighof7.2%in2023.Whilethegoods-producingsectorhadarelativelystrongyear,engineeringjobsdidnotseethatgrowth.ThisisduetothelargesupplyofengineersinCanadaasthenumberofengineering

studentshasincreasedby25%from2014to2023

.Coupledwith

higherimmigrationrates

anda

shrinkingmanufacturingsector

,engineeringjobsdidnotseemuch

growththisyear.

2025Outlook

RealwagesinCanadagrew2.1%in2024,witha

2.4%annualizedrateofinflation

.Realwagesgrewlastyearby

2%withanannualizedrateofinflation

of3.9%.Realwagesdecreasedin2022by-1.4%,witha

6.8%annualizedrateofinflation

.

Canadianshaveexperiencedrealwagegrowthoverthepasttwoyears,with

consumerpricesstabilizingaround2%annually.However,

housingaffordability

remainsasignificantissue

.Inflationcouldalsotickupbecauseoftheeconomic

conflictwiththeUS.

CanadaisthebiggestreceiverofAmericangoods

,particularlymotorvehiclesandindustrialmachinery/parts.Whiletariffswouldn’thavemuch

effectonthepriceoffood,energyorhousing,theycouldstillcauseinflationforcertainproducts,whichifbadenough,couldcausehigherwagegrowth.

WhilethereisapossibilityofhigherinflationforCanadain2025,itismorelikelythatwagegrowthwillslow.InflationappearstobeundercontrolandGDPisgrowing,soexpectwagestogrowmoresimilarlytopre-pandemictimes.

WagesinLatinAmerica

WhileLatinAmericanwageshavecontinuedtogrow,theregionsawreducedeconomic

growthin2024,evenascountriesintheregioncutinterestrates.Inflationremainedelevatedin2024,eatingintohouseholdbudgetsandforcingLatinAmericancountriestowalkafinelinebetweenrestrictiveandeasingeconomicpolicy.

Mexico

AsMexicohasgrownpost-pandemic,sohavewages.In2024,wagesinMexicogrew

7.7%

,fromanaveragehourlynominalrateof$3.54USDto$3.62USD*.Thisis

higherthan2022and2023,upfrom4.3%and3.6%respectively.Mexicannationaldailyminimumwagehasalsobeenraised

12%in2025

,from$12.28perdayto

$13.76*.Averagehourlymanufacturingwagesgrewin2024by

24.4%

,fromanhourlyaverageof$4.10USDto$5.10USD.Mexicanwagesarelikelytocontinuetogrowin2025butcouldbestifledbytheexpandingeconomicconflictwiththeUSifkeysectorsareaffected.TheMexicanPesohasnotseenmuchfluctuationagainsttheUSD,leadingforeigncompaniestohavethesamelaborbuyingpoweroverthepastfiveyears.

Brazil

Brazilianaveragemonthlyincomeroseby

4.1%in2024

,from

$511.98USDto$532.91USD*.InJanuary2025,the

minimum

monthlyincomerose

from$227.01USDto$244.72USD*,or7.8%.Overthepastfiveyears,theBrazilianRealhasstayedrelativelystrongagainsttheUSD,meaningforeigncompanieshavehadthesame

buyingpowerforlabor.

Argentina

Argentinianaveragemonthlyearningsgrewby52.5%forthefirsthalfof

2024,from$731.38USDto$1,115.50USD*.Accompanyingthisrisein

averagemonthlyearningswasariseintheminimummonthlyearnings,

whichgrewat74.4%,from$151.32USDto$263.84USD*.Nominalwageswillcontinuetoclimb,asArgentinahadan

annualizedinflationrateof117%

in2024.Althoughwageshaveincreasednominally,thePesohas

depreciatedby88%againsttheUSDoverthepastfiveyears.Asaresult,companiespayinginUSDwillfindtheirmoneygoesfurtherinthe

Argentinianmarket.

*January1,2025,exchangerate

2025Outlook

LatinAmericanwagesareexpectedtocontinuetogrowin2025,evenastheregioncontinuestostruggle.LatinAmericaislikelytogethitfromtwosidesin2025.First,theregionishighlyexposedtoriskssurroundingatradewarwiththeUS.LatinAmericancountriesexportalottotheUS,andtradebarrierswouldleadtoreducedexportsandgrowth.Second,LatinAmericaisexposedtotheslowdownoftheChineseeconomy.ChinahasmanyinvestmentsintheregionandasChinapivotstodomestic

consumption,LatinAmericaislikelytoseereducedforeigninvestment.

WagesinEurope

AcrossEurope,wagestrendedupwardsthroughout2024,drivenlargelybyhighinflation,combinedwithongoing

competitivelabourmarketconditions.

InQ4of2024,hourlylaborcostsroseby4.6%intheeuroareaandby5.1%intheEuropean

Union

.Employersarefacingpressuretomaintaincompetitiverateswhilefacingcostpressuresthroughnewlyintroducedminimumwagestructuresandtaxadjustments.

UKandPoland

MinimumwageshavebeenakeydriverofwagespikesinEurope,andthishasbeen

reflectedinAGSbenchmarkinganalysisthroughout2024.IntheUK,since2019,wagehikeshaveacceleratedduetoinflationarypressuressurpassinghistoricalaverages.TheminimumwageintheUKroseby39.3%fromApril2019toApril2024,withafurther

increasesettobeintroducedinApril2025,raisingtheminimumwageforadultsage21andoverto

￡12.21perhour

.

IntheUK,manufacturingandlightindustrialroleshaveseenthehighestgrowthinwage

ratesyearoveryear,withrolesincludingnetworkengineers,generallaborersandpackersemergingastopmovers.Thistrendisdrivenbyacombinationofhigherminimumwage

ratesandaneedtoattractandretainaskilledworkforceinhigh-turnoversectors.This

growthalsoreflectsabroadertrendwhereemployeesareincreasinglymovingawayfromlow-payingrolesinfavorofpositionsofferingbettercompensation,careerprogressionandimprovedworkplaceconditions.

Poland’slabormarkethasalsoexperiencedsignificantwageincreases,largelyinresponsetochangesinthestatutoryminimumwage.InJanuary2025,theminimumwageinPolandwillriseto30.5PLNperhour,markinganincreaseof10.1%yearonyearanda167%

increaseoverthelastdecade.

Thissharprisehasmostnotablyaffectedentry-levelroles,

wherewagehikeshavebeenmostpronounced.Asaresult,industriestraditionallyreliantonminimum-wagelaborare

experiencingarippleeffect,withsalariesforrolesrequiringlessexperiencerisingsubstantially.AGSbenchmarkingdatahighlightsthistrend,withnoticeableupwardmovementinwagesforentry-levelpositions,particularlyincallcenters,

customerserviceandlower-leveladministrativeroles.Theseroleshaveexperiencedsomeofthemostsubstantialyear-on-yearwageincreasesinPoland.

Whilewagesforentry-levelpositionshavesurged,thewagegrowthformoreexperiencedprofessionalshasnotkept

pace.Asaresult,thewagegapbetweenentry-leveland

seniorroleshasnarrowedforsomeroles,particularlyin

sectorswhereentry-levelrolestraditionallydominated.

However,thismayrepresentashort-termmarketadjustmentinresponsetorecentminimumwagechangesratherthanalong-termtrend.

Whilethesewagehikeshavebeensubstantialintheshortterm,AGSwillcontinuetrackingthisshiftasweexpect

companiestoadjustinternalwagestructuresovertimetobalancewagecompressionwithlong-termsustainability.

Belgium

Belgium’swagegrowthhasremainedstrong,averaging4%annuallyoverthepastfiveyears,withaparticularlysharpincreaseof10.2%in2023duetoautomatic

wageindexationinresponsetoinflation.Thissystem,whichadjustssalariesinlinewiththecostofliving,hashelpedcushiontheimpactofrisinglivingcosts.

However,withinflation

expectedtofallto1.9%

by2026,realwagegainsmayslowinthecomingyears.

Belgium’spharmaceuticalsectorremainsastandoutperformer,benefitingfrom

continuedinvestmentinbiotechresearchandproduction.

CompanieslikeJanssen,

PfizerandUCBhavehelpeddrivewagegrowth

,withsalariesinpharmaoutpacingmanyotherindustries.

Netherlands

TheNetherlandshasexperiencedslowerwagegrowthcomparedtoits

neighboringcountries,withan

averageannualincreaseof3.5%overthepastfive

years

.While2023sawa5.6%rise,wageshavestruggledtokeeppacewith

inflation,

whichhitapeakof10%in2022beforefallingto3.2%in2024

.Thissuggeststhatrealwagegrowthisstillrecovering,butatightlabormarket,

especiallyintechandhealthcare,hasdrivenupwagesinkeysectors.

TheITsectorhasseenthemostsubstantialwagegrowth

,withsalariesrisingfasterthanthenationalaverage.Amsterdam,inparticular,hassolidifieditsstatusasoneofEurope’stoptechhubs,withcompanieslike

ASML,AdyeandB

aggressivelyhiringandincreasingpaytoattractscarcetalent

.

Germany

Germanyhasrecordedthehighestwagegrowthamongthepreviously

mentionedEuropeancountries,withsalariesincreasingby4.3%peryearonaverage,peakingat5.8%in2023–thefastestriseinoveradecade.Thisislargelyattributedtohighinflationandcollectivewagebargaining

agreements,particularlyinmanufacturingandengineering.However,

Germany’sinflationrateremainsaconcern,

hitting2.6%inDecember2024

,whichcouldimpactrealwagegains.Risinglaborcosts,particularlyinthe

automotiveindustry,havealsoledtodebatesovercompetitiveness,withfirmslike

Volkswagenfacingcostpressures

.

EngineeringremainsacriticalpillaroftheGermanyeconomy,

butwithover

100,000vacancies

,wagepressurescontinuetoincrease,withwagesin

manufacturingincreasingby5.7%in2024.Thisgrowthisfueledbya

persistentdemandforskilledengineers

,particularlyinmechanical,electricalandautomotiveengineeringdisciplines.Thecountry'sstrongemphasisoninnovationandquality,anditsfocusongreenenergyandautomation,hassolidifieditspositionasagloballeaderinengineering.

2025Outlook

WhilewagegrowthtrendsacrossEuropehaveshownsignsofcooling,particularlyinresponsetofallinginflationrates,pressureremainsinskilledmarkets.Thetrendhasshiftedfrompronounceddemand-drivenwage

increasestosupply-drivengrowth,influencedbyregulatorychangesincludingrecentminimumwageadjustments.

Givenongoingcostpressuresinthemarket,employerscontinuetoface

battlingprioritieswhenitcomestohiring,emphasizingtheneedtostandoutamongcompetitorstoattractandretaintalent.Companiesmustremainagileinadjustingcompensationstrategiestoalignwiththeevolvingmarketconditions,particularlyinhigh-demandsectorsrequiringspecializedskills.

Werecommendemployersfocusonlow-complexity,high-rewardschemestodriveefficiencyandgrowthintheinternalworkforce.Thisincludesan

emphasisonupskilling,i.e.,focusingeffortsongrowingthepotentialoftheexistingworkforcebyprovidinggreateropportunitytoexpandcapabilitywithinexistingrolesandpursueopportunitiesfordevelopment.

WagesinAsiaPacificRegion

CountriesacrosstheAsiaPacificregionhaveseenquitedifferentoutlooksinrecentyearsdependingonhowfaralongtheyhaveindividuallyprogressedtobecomingfullydevelopednations.Thishasleftdifferentnationsinthe

regionwithverydifferentwagegrowthtrendsevenifgeographicallytheyareclosetogether.Chinabecomingamoredevelopedcountryas

mentionedin

thelastissueoftheWorkforceTrendsReport

hashadmanyknock-oneffectsforitsneighbors.CountrieslikeIndiaandSingaporehaveseenhighwagegrowthandhighinflationastheystepintotherolesChinaonceoccupiedinglobalmarkets,whilemoredevelopednationslike

AustraliaandChinacontendwiththesamestagnationtheirpeersarestrugglingwitharoundtheglobe.

Duetothesevariedstagesofdevelopmentandeconomicoutlooks,wagepressuresareexpectedtoalsobequitedifferentbycountryin2025.MoredevelopednationslikeAustraliaandChinaareexpectedtoseelowerwagegrowththisyearthandevelopingnationslikeIndia.Workersthroughouttheregionwilllikelyseewagesremainabovethelocalinflationrate,asthey

attempttoregaintheirbuyingpowerlostduringrecordlevelsofinflationin2022and2023.Ingeneral,entrylevelandworkerswithmorecommon

skillsetsareexpectedtoseemuchsmallerwagegrowththisyearthanhighlyexperiencedworkerswithin-demandskillsastheglobalskillsshortage

continuestoproliferate.

Australia

Earningsforadultsworkingfulltimerose

4.7%

over2024inAustralia.Wagegrowthhasbeenpickingupspeedsteadilysincethepandemic,movingfrom2.1%growthin

2021tonowsittingwelloverdoublethatrate.2024alsomarksthefirstyearwagegrowthhasoutpacedpeernationsliketheUSinrecentmemory.

It’snotallgoodnewsforworkersthough.Inflationhasdroppedtomorenormallevelsasofthisyear,butduringthepandemicerainflationspikedashighas

7.8%

.Asa

result,realwages,orwagesminusaddedcostsfrominflation,havebeendroppingsince2021.AccordingtothemostrecentdatainJune,realwagesrosejust

0.3%

.Whilethisisanimprovementfromrealwagesdroppingasmuchas-4.4%in2022,Australianworkershavealongwaytogotorecovertheirlostbuyingpower.

MostofthemajorsectorsthatAGSserves,likeprofessional,ITandhealthcare,fellbehindthenationalaveragerateofwagegrowth,withengineeringandlightindustrialbeingtheonlymajorexceptions.Manufacturingandminingwagesroseby5.6%and5.4%respectively,butelectricity,gas,waterandwasteservicesdominatedearningsfigures,rising6.3%lastyear.

In2025,Australianwagegrowthwillremainhigherthanusualduetopandemiccostoflivingincreases.Althoughinflationisdeclining,workerswillseektoregaintheirpurchasingpoweroverthenextseveralyears.Employersmuststayawareofthesechangestoretainvaluableemployeeswhomaybetemptedtoseekhighersalarieselsewhere.

China

Chineseaverageyearlywagesgrewby

0.8%

from2023to2024

,from$16,940USDto

$17,080USD*.From2019to2024,averageyearlywagesgrewby34.8%,startingat

$12,670(90,500CNY).WagesinChinaare

likelytoincreaseasthecountrymovesfromanexport-basedmodelgrowthtointernal

consumption.Wageswillhavetocontinuetorisetoboostconsumptiondomestically.Overthepastfiveyears,theCNYhasstayed

constantagainstthedollar,leadingtomore

stablelaborcostsforforeigncompanies

operatinginChina.Chinahasengagedin

currencymanipulation,

proppinguptheCNY

against