According to a report by Jinshi Data on August 13, a study showed that inflation-adjusted wages in Germany will increase at the fastest rate in more than a decade this year. The study said that the labor agreement from January to June indicated that wages will rise by 5.6% in 2024, which is an increase of 3.1% in real terms.
Wage developments in Germany and the euro zone have been closely watched as the European Central Bank considers how quickly to cut interest rates. Healthy wage growth is crucial to supporting an economic recovery after an inflation shock.
Researcher Thorsten Schulten said that strong real wage growth this year would make up for the sharp decline in real wages in 2021 and 2022, as well as a smaller decline in 2023. He said there was still a lot of work to be done in the collective wage development. In order to stabilize the economy, a substantial increase in real wages would make economic sense.
