"Real" Pay Increases in U.S. to Lag China, India & Eastern Europe

New research from Hay Group shows that "real" pay increases (pay increases adjusted for inflation) for U.S. workers will substantially lag those in China, India and Eastern Europe in 2007.  According to Hay, U.S. administrative, professional and senior management employees are predicted to see real increases of just 1.4% versus increases approaching 8% in high growth economies.

Some details by region are presented below.  Additional information can be found in the press release, which also provides a link to the Hay 2007 Global Pay Day Analysis Tables (although the link did not appear to be functional today).

China and India

"The wealth created by rapid, focused development is resulting in a pay boom for Chinese and Indian workers, who will enjoy some of the largest real pay increases worldwide in 2007," says Hern Yin Goh, Director of Hay Group Reward Information Services in Shanghai.

Predicted real pay increases for China-

• Administrative workers - 7.9%
• Professionals - 7.8%
• Senior management - 8.9%

Predicted real pay increases for India-

• Administrative workers - 5.9%
• Professionals - 5.9%
• Senior management - 6.9%

Eastern Europe

"Growing pay packets in Eastern Europe reflect continued economic development in the region," said Scott Marlowe, General Manager, Hay Group Czech Republic.  "While wages are growing from a much lower level for manual and administrative workers, pay levels for managers are closer to Western standards.  The lower cost of living in the East means that as the management pay gap closes, senior managers in Eastern Europe enjoy a significantly greater purchasing power than those in the West."

Predicted real pay increases for Bulgaria-

• Administrative workers - 4.3%
• Senior management - 7.8%

Predicted real pay increases for Slovakia and Lithuania, overall, average 5.5% or better

Predicted real pay increases for Rumania, overall, average 3.1%