Study: Real wages in the EU fell again last year
Employed individuals in the European Union lost purchasing power again despite nominal wage increases in the past year. According to the Economic and Social Science Institute (WSI) of the Hans-Böckler Foundation, real wages decreased in twelve of the 27 EU countries and went down on average by 0.6 percent. In 2022, they had even fallen by 4.2 percent. However, real wage growth is expected in almost all countries this year.
For Germany, researchers estimate a real wage loss of 0.3 percent for the previous year. In 2022, it was 4.4 percent. According to the information given, significant real wage losses occurred in the Czech Republic (4.4 percent), Malta (-3.8 percent), and Italy (-3.3 percent). Real wage growth, on the other hand, was observed in Romania and Belgium.
These trends are then almost uniformly apparent across the EU, as the WSI reported based on the EU Commission. The researchers therefore expect an average growth of 2.0 percent. However, they pointed out that the losses of the previous years "have not been made up for yet." They also see a need for catch-up in wage development, as consumer prices have permanently increased. A rise in wages is also important for the economy as a whole, "to promote private consumption and thus support the economy."
Despite the predicted real wage growth in many EU countries for the current year, the losses from previous years, such as a 4.2% decrease in 2022, have not been fully recovered. Analysis suggests that real wages decreased in purchasing power for many individuals across the EU, including in countries like Germany, Czech Republic, Malta, and Italy.
A crucial factor in addressing these real wage losses and promoting purchasing power is the anticipated growth in real wages this year, as highlighted by the Economic and Social Science Institute (WSI). This increase is essential for stimulating private consumption and providing support for the overall economy.
