Hundreds of millions of workers worldwide have lost over a trillion dollars to inflation in recent years, while the world’s billionaires and big corporations are getting richer, Oxfam said in a new report.

Over the last two years, the salaries of nearly 800 million individuals have failed to keep up with inflation and they have lost $1.5 trillion, equivalent to nearly a month (25 days) of lost wages for each worker, said the report, highlighting inequality and global corporate power.

The report noted that it would take 1,200 years for a woman working in the health and social sector to earn what the CEO of the biggest 100 Fortune firm makes in 12 months.

The prices of essentials, including food, gas and other commodities, rose to decades-high levels in recent times, while the salaries of average-income workers barely moved.

Inflation has been biting into the purchasing power of workers, particularly those who earn minimum wage, the International Labour Organisation (ILO) said in an earlier report based on 2022 data.

“Rising inflation is causing real wage growth to dip into negative figures in many countries. The increasing cost of living has the greatest impact on lower-income earners and their households. This is because they spend most of their disposable income on essential goods and services,” the organisation said.

Billionaires get richer

While workers are struggling with inflation and stagnant incomes, top bosses of major corporations are bringing home higher pay.

According to Oxfam, seven out of ten of the world’s biggest corporations have a billionaire as CEO.

Its analysis of the World Benchmarking Alliance data on more than 1,600 of the largest corporations worldwide shows that only a small number (0.4%) of the world’s largest businesses have committed publicly to provide their staff with a living wage and support a living wage in their value chains.

“People worldwide are working harder and longer hours, often for poverty wages in precarious and unsafe jobs,” Oxfam said.

The charity releases a report every year to highlight rising inequality. In this year’s edition, Oxfam put the spotlight on the five richest people on Earth, whose fortunes have doubled from $405 billion to $869 billion since 2020, while nearly five billion people have become poorer.

Corporations get richer

As the fortunes of the world’s wealthiest grow and CEOs bag huge payouts, large corporations are also raking in more earnings.

Oxfam estimated that large businesses are expected to smash their annual profit records in 2023, with 148 of the world’s largest corporations posting $1.8 trillion in net income in the year to June 2023, rising by 52% compared to the average net earnings in 2018-2021.

Oxfam also noted that for every $100 made by 96 major corporations between July 2022 and June 2023, $82 went to wealthy shareholders.

(Writing by Cleofe Maceda; editing by Seban Scaria)