While large pools of surplus labour have been absorbed in many economies, higher productivity growth is vital in fostering domestic demand, especially in those economies where the size of the labour force is forecast to stagnate due to population dynamics. Moreover, to foster domestic demand, countries will also need to pass on productivity gains to workers and strengthen investment in human resources to further improve productivity and competitiveness (ILO, 2015d). In contrast, wages for higher paid workers are usually better determined directly by employers and employees or trade unions.