Value of workers’ pay hits a three-year high

The slowing world economy looks set to get a boost from stronger consumer demand next year, as low inflation boosts the real value of workers’ pay rises to a three-year high, according to a survey published yesterday.

A plunge in oil prices has pushed inflation sharply lower, and means real wages are predicted to rise by an average of 2.5% globally in 2016, the study by human resources firm Korn Ferry Hay Group showed.

Nominal wage growth of 4.9% across a range of 24,000 firms and organisations around the world was in line with recent years.