TABLE T5-ASIA AND OCEANIA: 1996-2011 REAL-WAGE GAP RATES FOR ASIA AND OCEANIA, IN PURCHASING POWER PARITY (PPP) TERMS, FOR ALL EMPLOYED IN MANUFACTURING

Since 2010 the international comparison of hourly compensation costs (hourly wage rates) between the U.S. and selected developed and "emerging" markets refers to all employed in the manufacturing sector and no longer will be available for production workers only. Production-line wage rates are on average 20% below wage rates for all employed in manufacturing, including production workers, for the 1996-2009 period, for all countries included in the assessment. For further reference see wage-gap assessment of trends and differences between production-line and all employed in manufacturing in

compensation cost terms here: <http:www.jussemper.org/Resources/Labour%20Resources/Resources/PLWvsAEM_wage_rates96-09.pdf>

In comparing 2011 with 2010, Singapore and Japan's economies recorded some of the greatest gains in their wage-rate Equalisation Index (Eq-Idx) position not just in the Asia and Oceania region but amongst the 31 countries in the three regions covered in our assessment, whilst the other economies in this region showed negligible improvement or no change.

• East Asian countries, particularly Singapore and South Korea, experienced very strong gains in Eq-Idx between 1996 and 2011. Singapore and South Korea registered powerful growth of their Eq-Idx between '96 and '08. South Korea recorded its best Eq-Idx in 2006 and managed to remain at the same level in 2011. Singapore recorded its best Eq-Idx in 2008 to then drop drastically, but it has recovered much of its best position since 2008. Yet, while South Korea gained only one point in its Eq-Idx in 2011, mostly due to the appreciation of its currency and a low increase in PPP cost of living, Singapore recorded the second highest increase of its Eq-Idx of the 31 countries in all our assessments (after Argentina), gaining 8 points in 2011, mostly due to the combination of a strong increase in the local wage rate, the appreciation of its currency and a low growth of the PPP cost of living.

• Japan has been gradually reducing its gap and, after a slump in 2010, it recorded its best Eq-Idx ever in 2011. However, this has been due to the high appreciation of the yen and a relatively low PPP increase, for the increase of the local wage rate was barely above the increase of the U.S. wage rate (2,11% vs. 2,07%).

• New Zealand continues to remain at fairly the same level as in 1996, only two points ahead and just one Eq-Idx point below its best position ever (2008). New Zealand's local currency wage rates did increase strongly, at more than double the U.S. wage rate. Yet, since 2006 it has recorded very steep increases in its PPP cost of living, with the highest recorded ever in 2011 at the rate of 120 (or $1,20 U.S. dollars). The sustained increase in the cost of living combined with a sustained increase in its currency appreciation has nearly neutralised the increase in wage rates in local currency and thus the lack of any meaningful improvement in its Eq-Idx.

• Australia has also lost ground since 2004 and is now at the level of '96. Its PPP growth since 2006 is even worse than in New Zealand, recording the steepest climb of all countries in 2011 (13,8%). Yet, unlike New Zealand, its increase in the PPP is mostly due to a steep currency appreciation of 37% since 2006, making it extremely difficult to close the living-wage gap despite a sustained growth of wage rates in local currency.

• As in the case of Mexico, the Philippines' track record since 1996 exposes a deliberate State policy of maintaining real wages at the level of modern-slave-work wages, with a 10 Eq-Idx that is one point above and below its lowest and highest equalisation indices. Consequently, the Philippines continues to have the worst position of the 31 countries in the three regions of our assessments.

Download the pdf file of Table 5 for Asia and Oceania economies here.