Across the world some 200 million people are out of work—a number set to rise to 208 million by 2015.
Between 2010 and 2011, income inequalities increased in 14 of the 26 advanced economies studied, including in France, Denmark, Spain and the United States. In the United States, for instance, the richest seven percent of the population saw their average net worth swell from 56 percent in 2009 to 63 percent in 2011.
“The remaining 93 percent of Americans saw their net worth decline,” ILO said
Large firms in advanced economies now enjoy profit margins similar to those attained between 2004 and 2007 but rather then re-invest profits, companies presently prefer to hoard cash regardless of the low interest rates - a sign that they do not feel there is an opportunity to make a good return by expanding production. And at a global level, publicly listed companies increased their cash holdings from $US2.3 trillion ($A2.40 trillion) in 2000 to $US5.2 trillion in 2008 to $US6.5 trillion in 2011. Nor are the banks circulating this capital bonanza from the multi-nationals. Smaller firms have seen their profit margins plunge around 40 per cent from pre-crisis levels as they continue to struggle to gain access to credit. "There has been a growing polarisation between small and larger firms in terms of profitability," the ILO pointed out.
"Executive compensation has returned to, and in some cases exceeded pre-recession levels", the ILO said.
In Germany and Hong Kong, average chief executive pay among the largest firms for instance swelled 25 per cent from 2007 to 2011, pushing the salaries of Germany's top bosses for instance from 150 to 190 times that of the average worker. In the United States, meanwhile, the top CEOs earned 508 times the wages of the average American worker in 2011, the report showed.
Between 2010 and 2011, income inequalities increased in 14 of the 26 advanced economies studied, including in France, Denmark, Spain and the United States. In the United States, for instance, the richest seven percent of the population saw their average net worth swell from 56 percent in 2009 to 63 percent in 2011.
“The remaining 93 percent of Americans saw their net worth decline,” ILO said
Large firms in advanced economies now enjoy profit margins similar to those attained between 2004 and 2007 but rather then re-invest profits, companies presently prefer to hoard cash regardless of the low interest rates - a sign that they do not feel there is an opportunity to make a good return by expanding production. And at a global level, publicly listed companies increased their cash holdings from $US2.3 trillion ($A2.40 trillion) in 2000 to $US5.2 trillion in 2008 to $US6.5 trillion in 2011. Nor are the banks circulating this capital bonanza from the multi-nationals. Smaller firms have seen their profit margins plunge around 40 per cent from pre-crisis levels as they continue to struggle to gain access to credit. "There has been a growing polarisation between small and larger firms in terms of profitability," the ILO pointed out.
"Executive compensation has returned to, and in some cases exceeded pre-recession levels", the ILO said.
In Germany and Hong Kong, average chief executive pay among the largest firms for instance swelled 25 per cent from 2007 to 2011, pushing the salaries of Germany's top bosses for instance from 150 to 190 times that of the average worker. In the United States, meanwhile, the top CEOs earned 508 times the wages of the average American worker in 2011, the report showed.
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