The United States may be mired in a tepid economic recovery, but it’s worse in other countries. One indicator: In 12 of 13 industrial economies surveyed by the nonprofit WorldatWork organization, real salary budgets declined from 2012 to 2013.
The lone exception was the U.S., where salary budgets crept up by a meager one-tenth of 1%.
Employers in the previously hot markets of Brazil, China and India saw the biggest declines, with salary budgets averaging 0.8% less this year than in 2012.
“The gradual increases in the U.S. is good short-term news, but falling pay budgets in every other industrialized country isn’t great news for the global economy, on which U.S. economic growth is so dependent,” explained Kerry Chou, WorldatWork’s senior compensation practice leader.