By Sajo Jallow
In the Global Wage Report 2024-25 issued by the United Nations International Labour Organization (ILO), we read: “In Africa wage statistics remain sparse and volatile, and hence the estimates must be interpreted with caution. This is the region where wages performed the worst over the last decade, …. Since 2015, real wage growth in Africa has been either negative or very modest, and the most recent years are no exception.” p.17. It is one of the regions where most of the active workforce are in the so-called informal, “unknown” economy. What’s ILO saying?
Here, on the Gambian front, about half of the workforce is said to be in the informal service sector alone. We do not know much about it, except that most toil in poverty. Maybe, more “formalization projects” are needed to help educate?!
Where are we?
“Overall, the evidence suggests that, in most countries, low-income households have indeed been facing higher levels of inflation, driven by substantial increases in the price of essential goods such as food, housing and energy.” p.23. Nevertheless, it is possible to take deliberate policy action to address this permanent cost-of-living crisis. “The decrease in wage inequality, combined with an increase of 36 per cent in the global real average wage over the last 20 years, is encouraging …. Working poverty, defined as employed persons earning less than US$2.15 [about D155] per day per person in PPP [Purchasing Power Parity] terms, declined ….” p.99. This is in line with the United Nations Sustainable Development Goal of reducing inequality.
But not so “encouraging” for low-income countries like The Gambia. Here, the share of low-paid wage workers, defined as those receiving less than 50 percent of the median wage, are close to one-quarter. That is, almost double the global average rate of about 12 percent. In terms of wage inequality, the so-called Palma ratio obtained by dividing the total wage bill of the top ten percent or decile, by that of the bottom 40 percent, showed evidence of unfairness to the workers. For around 2021, the top ten percent made almost five times what the bottom 40 percent made, compared with ratios of almost 12 times in Malawi, 7 times in Rwanda, and about three times for the global average (Fig. 5.8, p.46).
Due to “informality” in the socio-economy, or the inability to study fully the working conditions of the people, the majority are considered non-wage workers. They include own-account workers, cooperative-associated workers, and contributing family workers, representing 70-75 percent of the workforce. Women and the youth are over-represented, with low labour incomes under persistent inequality. The share of low-paid workers among all workers was about 44 percent, or two out of five. This figure went up about 55 percent for the category of non-wage workers who represented about half the workforce (Fig. 8.4, p.91). Poverty has remained endemic for most working people for decades, whilst the top few get richer. Comparing wealth distribution, as the bedrock of exploitation causing unfair income gaps, only highlights the urgency of redress to achieve social stability.
What shall we do?
Measures to consider include a minimum living wage, or a universal basic income being experimented with through social protection programs. There is the traditional extended-family safety network, being supplemented with public social protection measures. With the Covid-19 health crisis in 2020 adding to cost-of-living challenges, workers found it necessary to call on the Gambia government to award them a “30 percent cost of living allowance ….” p.2. The Worker Newspaper, 16th May, 2022: May Day Message, GAMTUB [The Gambia Trade Union Bureau].
The remittances, estimated from well over 100,000 disenfranchised citizens abroad, largely supplement household consumption. But much more is needed to invest in agriculture, manufacturing, and technology-enablers in production and basic services. Private and public funds, together, through cooperative and development banks, not just commercial ones. Workers, farmers, women, and youth voices aloud. The discussion on such funded programs and policies, seeking to amplify and unite the voices of exploited working people everywhere, may well drown those echoing ethnic or religious division. As if past or on-going genocidal activities by repressive regimes are not enough reminders. But surely, the cooperative way, or ubuntu spirit with deep African roots, will win the day for humanity.
A dedication to two fallen comrade brothers, Modou Gassama and Ousman Manjang, in the line of duty.
The post Social and Worker-Income Inequality: What shall we do? appeared first on .
By Sajo Jallow In the Global Wage Report 2024-25 issued by the United Nations International Labour Organization (ILO), we…
The post Social and Worker-Income Inequality: What shall we do? appeared first on .
