SEOUL, Dec. 26 (Korea Bizwire) — Economic recovery without a wage increase has been picked as one of top 10 global trends next year, a local think tank said Monday.
In the 2018 Global 10 Trends report, the Hyundai Research Institute (HRI) said an economic recovery without wage hikes is widely expected globally as employers in advanced countries prefer hiring low-paying temporary workers to regular employees.
The research institute expected the number of low-paying jobs in the food and housing industry will increase but that of high-paying jobs in the financial and manufacturing industries will undergo slowing growth.
“A weak growth in wages drives down workers’ disposable income, which in turn weighs on consumer spending and the central bank’s monetary tightening policy,” the report said.
In other trends, the HRI called on the Seoul government to maximize its own interests through practical diplomacy with major powers including the United States, China and Russia.
As the U.S. Federal Reserve is widely expected to raise rates at least three times next year, Korean financial authorities need to fully prepare for any volatility in the financial markets, the report said.
The HRI said multinational companies may move their production facilities from emerging countries back home as advanced countries cut corporate taxes and offer more benefits.