Swedish employees lost more than 5% of their salary in 2022 - at the same time, senior managers are earning more.
One billion workers saw an average real wage cut of 3.19% in 2022, adjusted for inflation, according to an Oxfam survey of wage growth and inflation in 50 countries.
Swedish employees lost an average of 5.6% of their pay. At the same time, the real wages of the most well-paid CEOs are increasing both in Sweden and globally. This is according to recent figures from the International Labor Organization (ILO) and national statistical databases, compiled by Oxfam.
'Almost everyone is getting worse at the moment, both in Sweden and in the world, and many are finding it difficult to cope with everyday life. Those who earn the least generally spend most of their disposable income on current expenses such as housing, electricity and food costs, and lack savings. Already today, people choose between buying food at the grocery store or paying their electricity bill on time. Meanwhile, those who earn the most are seeing their savings increase."
Suzanne Standfast, Secretary General Oxfam Sweden
International figures show how CEO salaries at the largest companies continue to rise, for example, over 300 of the highest-paid executives in the US, UK, India and South Africa received an average salary increase of 9% in 2022. In Sweden, figures from the Swedish Trade Union Confederation (LO) show that the average salary of a company CEO is 69 industrial worker salaries and the gap between CEO salaries and employees is the largest since 1950.
"These gaps are completely unreasonable - and those with power and influence must act. Business leaders have a responsibility to ensure that the pay gap does not widen between well-paid managers and ordinary workers. Similarly, political action is needed to reduce inequality. Unfortunately, the government's and the Sweden Democrats' spring budget lacked crisis measures to help the most vulnerable."
Suzanne Standfast, Secretary General Oxfam Sweden
Oxfam notes that, as with previous crises such as the pandemic, ordinary people around the world are currently bearing the brunt of the impact of the crisis. Crises hit hardest those who are already most vulnerable and live in countries with widespread poverty.
"It is a betrayal of the world that Sweden and many other countries are reducing their aid and global responsibility right now. The inequality crisis undermines welfare, increases people's frustration and powerlessness, and lowers confidence in our elected politicians. Inequality locks people into poverty and leads to insecure, polarized societies characterized by social unrest and violence."
Suzanne Standfast, Secretary General Oxfam Sweden
The figures in brief
> Employees in Sweden faced an average real wage cut of 5.6% in 2022 as wages did not keep pace with inflation.
> LO figures show that the average salary of a company CEO is 69 industrial workers and the gap between CEO salaries and employees is the largest since 1950.
> One billion workers in 50 countries received an average real wage cut of 3.19% in 2022.
> While workers' wages are not keeping pace with inflation, CEOs' real wages are increasing. Over 300 of the highest-paid executives in India, the UK, the US and South Africa received a 9% real pay increase over the same period.
Sources:
Oxfam estimates are based on figures and data from the International Labour Organization, Eurostat, the World Bank and the OECD. See full methodology here.