The global macroeconomic landscape deteriorated significantly in 2023. According to the World Economic Outlook report by the International Monetary Fund, the global growth rate is forecasted to decline from 3.5% in 2022 to 2.9% in 2024. Moreover, global trade, investment, and industrial activities are facing adverse effects due to the steepest hike in interest rates since the 1980s by monetary authorities across the globe.
Despite the economic downturn, global unemployment rates and job gaps improved compared to 2022. According to a report by the International Labour Organization (ILO), the global unemployment rate improved from 5.77% in 2022 to 5.1% in 2023. The global job gap decreased and is now close to 435 million in 2023 compared to 473 million in 2022. However, despite the improved unemployment rate, real wages decreased in 2023 for the G20 countries due to the challenge of keeping up with high inflation rates and high cost of living. On January 9,Reutersreported that the US Department of Labour had issued a rule forcing companies to treat gig workers as employees rather than independent contractors. Due to this, federal and state laws of overtime and minimum wage will apply to these contractors, who are to be treated as company employees according to this new ruling. You can also read our article on20 Countries with the Highest Minimum Wage in the World.
Major Trends in The Job Market
According to the Future of Jobs 2023report, published by the World Economic Forum, technology adoption is expected to be the key factor driving transformation in the business sector over the next 5 years. It is worth noting that over 85% of the firms surveyed by the World Economic Forum mentioned frontier technology and digital access as the most prominent trends for their organizations. Moreover, within technology adoption, 75% of the companies are looking towards acquiring high-end technologies, including big data, cloud computing, and artificial intelligence, by 2027. Next to these technologies are the ones encompassing education and workforce technologies. On the other hand, roles such as clerks, secretaries, bank tellers, data entry clerks, and cashiers are expected to decline faster over the projected period.
Gender parity concerning job opportunities was evident as per the report by the International Labour Organization. The job gap in 2023 for women was considerably high at 13.7% across all income group countries compared to 9.3% for men. Moreover, it is important to note that the job gap was more profound in lower and middle-income countries compared to more developed economies. However, on the bright side, employment trends are inclined to reduce this gap; as per the World Economic Forum, 79% of companies will prioritize women, 68% will prioritize youth under 25 years, and 51% will prioritize people with disabilities as part of their Diversity, Equity, and Inclusion (DEI) programs in the upcoming years.
Economic Outlook of Africa
While most of our lowest minimum wage countries are based in the African region and are low or middle-income countries, they are emerging and improving their conditions. The African economy holds huge potential in terms of rich natural resources and human capital. The United Nations World Economic Situation and Prospects (WESP) 2024 predicts Africa’s average GDP to grow at 3.5% in 2024, slightly increasing from 3.3% in 2023. It is worth noting that for Nigeria alone, the growth forecast for 2024 is at 3.1%, mainly due to reforms in the oil sector.
On January 9, Bloomberg reported that the International Monetary Fund predicts that African countries will occupy the top six positions in terms of economic growth in 2024. Yvonne Mhango, Bloomberg Africa Economist, stated:
“Sub-Saharan Africa’s growth prospects are brightening; eight of the region’s top-10 biggest economies – which together account for another 40% of regional GDP – will grow by a strong 5% on average.”
Some companies leading the African economy include Barrick Gold Corporation (NYSE:GOLD), MTN Group Limited (JSE:MTN), and Zenith Bank PLC.
Barrick Gold Corporation (NYSE:GOLD) is Africa's largest gold producer. It has mines in different African countries, including the Democratic Republic of the Congo, Tanzania, and North Mara. On January 21, Barrick Gold Corporation (NYSE:GOLD) reported that its mines in North Mara and Bulyanhulu maintained their performance and met the production targets for 2023. These mines are part of the Twiga partnership, a joint venture between the Government of Tanzania and Barrick Gold Corporation (NYSE:GOLD). Moreover, Mark Bristow, the chief executive officer of Barrick Gold Corporation (NYSE:GOLD), said:
“The Twiga partnership has not only transformed Tanzania’s gold mining industry, it has also re-established the country, well-known as one Africa’s most popular tourism attractions, as a prime investment destination that has a wealth of metal and mineral resources.”
On the other hand, MTN Group Limited (JSE:MTN) is Africa's largest fixed and mobile network company. The company offers various telecommunication services, including but not limited to internet services, bill payments, device financing, and data management. On January 9, MTN Group Limited (JSE:MTN) reported that it had strengthened its partnership with Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) to boost mobile financial services and financially empower millions of African citizens. The collaboration is expected to enhance financial inclusion for both first-end and high-end business users.
Moreover, Zenith Bank PLC is a prominent African financial institution, headquartered in Nigeria and Lagos. Extending its global footprint, the bank has established branches and representative offices in several countries, including Ghana, UAE, UK, China, Sierra Leone, and South Africa. On November 24, 2023, Zenith Bank PLC reported that it had signed a Memorandum of Understanding (MoU) with the French Government allowing the bank to open a subsidiary in France as well. While speaking at the signing ceremony, Jim Ovia, the founder and chairman of the bank, said:
"It gives me great pleasure to welcome you to Nigeria and Zenith Bank. I am indeed very delighted about the signing of this MoU with France. For me, it is an honour to do this on behalf of the bank, and we look forward to securing the licence and starting operations in early 2024"
Now that we have discussed some of the major trends in the job market, let's take a look at the 20 countries with the lowest minimum wage in the world.
20 countries with the lowest minimum wage in the world
Photo by Jon Tyson on Unsplash
Our Methodology
We have defined minimum wage as the wage that can be earned with no to minimal skills. We consulted data from the International Labour Organization’s Average Hourly Earnings database to compile our list. We used two filters, including, ‘total’ as a sex label to get wages for both men and women and ‘skill level 1 ~ low’ to get data for the minimum wage that can be earned with low or no skill level. We then converted hourly wages from local currencies to USD, as of January 18, for uniformity. With all our data sorted, we selected the countries with the lowest minimum wage and formed our list of the 20 countries with the lowest minimum wage in the world. The list is in descending order of the minimum hourly wage a country offers. In addition, we used sources, including the World Bank and government websites of the respective countries, to cite GDP per capita, population data, economic outlook, and minimum wage for each item in our list.
Note: The wages may vary slightly due to fluctuating exchange rates.
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20 Countries With The Lowest Minimum Wage In The World
20. Thailand
Minimum Hourly Wage: $1.36
Thailand recently progressed from a low-income country to an upper-middle-income country. With an annual GDP per capita growth of 2.5%, Thailand has increased its daily minimum wage from THB 353 to THB 363.00. According to the World Bank data, the country made remarkable progress in curbing the poverty rates from 58% in 1990 to 6.8% in 2020. It has a minimum hourly wage of THB 48.09 or $1.36 for low or no-skill-level roles.
19. Moldova
Minimum Hourly Wage: $1.23
With a population of 2.53 million and a GDP per capita of $14.5 billion, Moldova remains one of the poorest countries in Europe. According to the World Bank, Moldova is also amongst the countries most adversely affected by the Russia-Ukraine war. It has a minimum hourly wage of MDL 21.63 or $1.23. As a result of the revised minimum wage in Moldova, the updated minimum monthly wage has been increased from MDL 4,000 to MDL 5,000 per month.
18. Colombia
Minimum Hourly Wage: $1.20
Colombia has a population of 52.3 million and an annual GDP per capita growth of 6.5%. The current national minimum wage per month is COP 1.3 million without a travel allowance and COP 1.46 million per month with a travel allowance. Colombia has a minimum hourly wage of COP 4686.6 or $1.20.
17. Vietnam
Minimum Hourly Wage: $1.11
Vietnam has a development success story, it has progressed from being one of the poorest nations in the world to a middle-income economy in a single generation. The years 2002 to 2022 saw staggering growth as the GDP per capita increased 3.6 times during the stated period. Poverty rates have also declined from 14% in 2010 to 3.8% in 2020. It has a minimum wage of approximately $203.87 monthly for one of its best-performing regions. Vietnam's average minimum hourly wage is VND 27,096, approximately $1.11.
16. Uzbekistan
Minimum Hourly Wage: $1.00
Uzbekistan has a population of 35.6 million and is an economy with a GDP of $80.4 billion. In September 2023, the country adopted the National Development Strategy that outlines development objectives and other pivotal reforms across different sectors till 2030. Uzbekistan has a minimum monthly wage of UZS 980,000. Moreover, it has a minimum hourly wage of UZS 12516 or $1.00.
15. Turkey
Minimum Hourly Wage: $0.95
Turkey is the 19th largest economy in the world, with a population of 85 million and a GDP of $906 billion. The country experienced significant growth between the years 2006 and 2017, therefore pushing the country to achieve an upper-middle-income status. Currently, the minimum wage for Turkey is TRY 17,002. Moreover, the country has a minimum hourly wage of TRY 28.73 or $0.95.
14. Cambodia
Minimum Hourly Wage: $0.88
Before COVID-19 Cambodia was performing well economically, it gained a lower-middle-income country status in 2015. The country is known for its exports and tourism. The economy of Cambodia grew at an annual average rate of 7.7% from the years 1998 to 2019. The minimum wages have been revised for the year 2024; the wages have been increased from $190 to $202 for probation workers and $200 to $204 per month for full-time regular employees. Furthermore, Cambodia has an average minimum hourly wage of KHR 3595 or $0.88.
13. Lao People's Democratic Republic
Minimum Hourly Wage: $0.83
The Lao People’s Democratic Republic’s economic situation has deteriorated over the past 3 years; furthermore, the impact of COVID-19 and structural vulnerabilities have accelerated the economic erosion. As a result, the national currency is weakening, and inflation is increasing. Lao has a minimum monthly wage of LAK 1.3 million and an average minimum hourly wage of LAK 17163 or $0.83.
12. Bhutan
Minimum Hourly Wage: $0.76
Bhutan is a small landlocked country situated between India and China. The geographical landscape of the country is characterized by mountains and valleys. The country is famous for its principle of Gross National Happiness. As of 2021 the annual GDP per capita growth of Buhtan was 3.8%. It has a current minimum monthly wage of BTN 3,750 per month and an average minimum hourly wage of BTN 63.4 or $0.76.
11. Indonesia
Minimum Hourly Wage: $0.71
The year 2024 marks the revision of minimum wages across Indonesia. The minimum monthly wage of Indonesia's capital, Jakarta, increased from IDR 4.9 million to 5.07 million in 2024. The increase in the minimum wage has been announced for 38 other provinces and more than 500 cities and regencies. The average minimum hourly wage in Indonesia is IDR 11057 or $0.71.
10. Botswana
Minimum Hourly Wage: $0.65
Botswana is a country located in Southern Africa, neighbouring Nambia, South Africa, Zambia and Zimbabwe. It was amongst one of the poorest countries in the world but has developed significantly to become an upper-middle economy. With a relatively small population of 2.5 million, it has an annual GDP per capita growth of 4.1%. However, the country faces serious development challenges, most prominently inequality. It has an average minimum hourly wage of BWP 8.87, or approximately $0.65 per hour.
9. Zambia
Minimum Hourly Wage: $0.53
Zambia is a large landlocked country in Southern Africa. It has one of the world's youngest populations by median age and also has a rapid growth rate in terms of population growth. The population is expected to double in the next 25 years with the current growth rate. Currently, Zambia has a basic minimum per month wage of ZMW 1050. The average minimum hourly wage is ZMW 13.9 or $0.53.
8. India
Minimum Hourly Wage: $0.49
The minimum monthly wage for unskilled workers in India has been increased from INR 17,234 or $207.04 to INR 17,494 or $210.17. India is one of the fastest-growing economies of the world, it aspires to reach a high-middle-income country status by the year 2047. As of 2022, the annual GDP grew at 6.5%. However, challenges, including high levels of inequality and child malnutrition, threaten the economy. India has an average minimum hourly wage of INR 40.61 or approximately $0.49.
7. Argentina
Minimum Hourly Wage: $0.49
Argentina has a GDP of $650 billion and is one of the largest economies in Latin America. It has vast reserves of natural resources and is a leading agricultural economy. However, severe droughts hindered the growth rate for 2023, resulting in a 2.5% drop in growth. Argentina has an average minimum hourly wage of ARS 397.2, which is approximately $0.49 per hour.
6. Egypt
Minimum Hourly Wage:$0.45
Egypt is faced with a poly-crises situation with challenges such as macroeconomic imbalance, stagnant non-oil exports, issues related to Foreign Direct Investment and a general constraint of job creation and availability. Egypt's minimum average hourly wage is EGP 13.89, which is approximately $0.45 per hour.
