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Euro zone negotiated wage growth picks up in Q1
Euro zone negotiated wage growth accelerated to 4.69% in the first quarter of 2024, after moderating from a peak in the last three months of 2023.
© Lusa
Economia Economia
Negotiated wages in the euro zone rose by 4.69% year-on-year in the period between January and March, according to data released today by the European Central Bank (ECB), compared to 4.45% in the last quarter of 2023.
This increase was just one hundredth of a percentage point below that recorded in the third quarter of 2023, when wages rose by 4.7%, the highest since the ECB began collecting the data in 2005.
The increase in negotiated wages is key for the ECB to lower interest rates in June, after a large number of collective labour agreements were renewed during the first quarter of the year.
In this regard, ECB economists have highlighted that wage growth will remain high in 2024 and will present an uneven profile, as workers continue to recover the losses caused by inflation.
Negotiated wages in the euro zone began to rise in 2022 due to inflation and the shortage of labour in some sectors, leading to an increase of 2.92% in 2022 and 4.47% in 2023.
Read Also: Guindos believes that a 0.25 point cut in rates by the ECB is "prudent" (Portuguese version)
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