Workers profit little from growth
30 March 2007
BRUSSELS – Employees profit considerably less from economic growth than businesses. The total amount in wages paid out in Belgium is for the first time in recorded history less than the sum of company profits and income of the self-employed. This emerged from figures from the Institute for the National Accounts.
The ratio of wages to gross national product (GNP) fell in the first nine months of 2006 to 37.2 percent, the lowest point in 12 years. At the same time the gross operating surplus (mainly company profits) and mixed income (income of self-employed) rose to 38 percent of GNP. The increase primarily reflects the higher business profits, which reached a record high.
The drop of the share of wages in GNP, the rise of the share of profits, and the high salaries for senior managers are the result of globalisation. The increasing competition from China, India and Eastern Europe and growing immigration are putting the wages of many workers under pressure.
[Copyright Expatica News 2007]
Subject: Belgian news