🧵Wage growth indicators have been extremely volatile since the start of the pandemic, partly due to job retention schemes. Recently, wage growth in the euro area has gradually started to pick up, especially in the services sector https://www.ecb.europa.eu/pub/economic-bulletin/articles/2023/html/ecb.ebart202208_02~2328747465.en.html #EconomicBulletin
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Because of high inflation, real wages are now substantially lower than they were before the pandemic and are likely to fall further. This could lead to trade unions demanding higher wage increases, especially in sectors where wages are lower
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Wage growth is expected to be very strong in the coming quarters compared with the historical average. This reflects the robust labour market, the increase in national minimum wages and some catch-up between wages and high inflation rates
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Our latest #EconomicBulletin also examines how the pandemic affected wage dynamics differently across euro area countries.
Find out more https://www.ecb.europa.eu/pub/economic-bulletin/focus/2023/html/ecb.ebbox202208_04~ece5feea7b.en.html
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