Blog Post

German wages grow faster than euro area average

In 2012 German wages increased faster than in the rest of the European Union. In the first quarter German nominal wages and salaries increased by 2.1 percent compared to the same quarter in 2011 whereas they grew 1.6 percent in the euro area and 1.5 percent in the whole EU27 (year-over-year). During the second quarter of 2012 year-over-year growth rates increased a little more with nominal wages rising by 2.5 percent in Germany compared to 1.7 percent in the euro area and 1.9 percent in the EU27.

By: Date: December 7, 2012 Topic: European Macroeconomics & Governance

In 2012 German wages increased faster than in the rest of the European Union.

In the first quarter German nominal wages and salaries increased by 2.1 percent compared to the same quarter in 2011[1] whereas they grew 1.6 percent in the euro area and 1.5 percent in the whole EU27 (year-over-year).[2] During the second quarter of 2012 year-over-year growth rates increased a little more with nominal wages rising by 2.5 percent in Germany[1] compared to 1.7 percent in the euro area and 1.9 percent in the EU27[2].

The German wage growth is further supported by a more detailed look at the growth rates in certain industries. In 2012 new wage and salary agreements were reached through collective bargaining in main occupational fields. Taking previous negotiations into account and annualizing the growth rate for 2012 shows the actual wage increases in those fields. The growth rates this year range from only 0.59% in the printing industry to 3.57 percent in the civil service of the German federal government and municipalities, having an average of 2.63 percent (see Table).1

Annualized Wage Growth Rates 2012. Calculated from collective bargaining agreements, information taken from the German Statistical Federal Statistical Office of Germany.[1] Annualized rates calculated by Bruegel.

The numbers suggest that the adjustment process has started in the euro area. At the same time, the size of the differential between Germany and the euro area is still of a size that relative adjustment of wages may take 5 years.


[1] Deutsches Statistisches Bundesamt (2012)

[2] Eurostat (http://epp.eurostat.ec.europa.eu)


Republishing and referencing

Bruegel considers itself a public good and takes no institutional standpoint. Anyone is free to republish and/or quote this post without prior consent. Please provide a full reference, clearly stating Bruegel and the relevant author as the source, and include a prominent hyperlink to the original post.


Warning: Invalid argument supplied for foreach() in /home/bruegelo/public_html/wp-content/themes/bruegel/content.php on line 449
View comments
Read article More on this topic More by this author

Blog Post

What the 2018 EBA stress tests (don’t) tell you about Italy

The results of the latest European Banking Authority stress tests were eagerly awaited for their results on the four biggest Italian banks. At first sight, these banks seem well prepared to withstand an adverse macro-financial shock. But judging by the market reaction following their publication, the results have not appeased investors.

By: Inês Goncalves Raposo Topic: European Macroeconomics & Governance Date: November 15, 2018
Read about event

Upcoming Event

Nov
20
16:30

European Banking Supervision: the past five years and prospects for the future

This event will look back at the first five years of the Single Supervisory Mechanism.

Speakers: Danièle Nouy and Guntram B. Wolff Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic

Upcoming Event

Nov
22
12:30

Reviewing the EU fiscal framework

What are the positive and negative developments and is there scope for improvement?

Speakers: Niels Thygesen and Anne-Laure Delatte Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic

Upcoming Event

Nov
21
17:30

What is next for Central and Eastern Europe?

What are the priorities of for Central and Eastern Europe in view of the challenges facing Europe in 2019?

Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic

Upcoming Event

Dec
5
12:30

The future of the External Investment Plan in the next MFF

What are the challenges for implementation of the new EIP?

Speakers: Zsolt Darvas and Mikaela Gavas Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic More by this author

Podcast

Podcast

Director’s Cut: Options yet open for a Brexit deal

Robin Niblett, director of Chatham House institute, joins Bruegel deputy director Maria Demertzis for an assessment of what progress can be reasonably expected from the final months of the Brexit negotiations.

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: November 7, 2018
Read article More on this topic More by this author

Blog Post

Post-Brexit transfers of personal data: The clock is ticking

The UK government would like to keep EU-UK data transfers largely the same following the country's separation from the EU. But talks have yet to even commence on a future data-sharing relationship, and a landmark European Court of Human Rights ruling in September bodes poorly for the UK's future status under the EU’s General Data Protection Regulation.

By: J. Scott Marcus Topic: European Macroeconomics & Governance Date: November 7, 2018
Read about event More on this topic

Upcoming Event

Dec
14
12:30

Investment and Intangible Capital

A presentation of the EIB Investment Report

Speakers: Maria Demertzis and Debora Revoltella Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic More by this author

Blog Post

The consequences of Italy’s increasing dependence on domestic debt-holders

Bruegel’s updated data set of sovereign bond holdings illustrates how a rising share of Italian debt is held by domestic investors – a development with particularly significant implications, in the context of the Italian government’s disagreement with the European Commission over spending plans outlined in its draft budget.

By: Jan Mazza Topic: European Macroeconomics & Governance Date: November 6, 2018
Read about event

Past Event

Past Event

Brussels Briefing Live: A conversation with Nadia Calviño

The Minister of Finance from Spain discusses challenges ahead of the European Council in December

Speakers: Guntram B. Wolff, Nadia Calviño and Mehreen Khan Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 6, 2018
Read article Download PDF More on this topic More by this author

External Publication

Euro area reform: An anatomy of the debate

A year ago, a group of 14 French and German economists joined forces with the aim of forging common proposals for euro area reforms. Their report gave rise to a lively discussion among officials and academics. This Policy Insight summarises the group's proposals and also addresses some of the points raised in a subsequent VoxEU.org debate on the topic.

By: Jean Pisani-Ferry Topic: European Macroeconomics & Governance Date: November 5, 2018
Read article More on this topic More by this author

Opinion

Plädoyer gegen eine Politik der Scheinlösungen

Der Daueraufschwung verdeckt, dass Deutschland für die nächste Krise schlecht gerüstet ist. Und das Zeitfenster für Reformen schließt sich.

By: Jochen Andritzky Topic: European Macroeconomics & Governance Date: October 31, 2018
Load more posts