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.

Read article More on this topic More by this author
 

Podcast

Podcast

Unboxing the State of the Union 2021

In this Sound of Economics Live episode, Bruegel experts look at the State of the Union address delivered by Ursula von der Leyen, President of the European Commission.

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: September 15, 2021
Read about event More on this topic
 

Past Event

Past Event

The Sound of Economics Live: Unboxing the State of the Union 2021

In this Sound of Economics Live episode, we look at the State of the Union address delivered by Ursula von der Leyen, President of the European Commission.

Speakers: Grégory Claeys, Maria Demertzis, Alicia García-Herrero and Giuseppe Porcaro Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: September 15, 2021
Read about event More on this topic
 

Upcoming Event

Sep
23
14:00

How to strike the right balance between the three pillars of the pension system?

In this event panelists will discuss the future of European pension schemes.

Speakers: Elsa Fornero, Svend E. Hougaard Jensen and Suvi-Anne Siimes Topic: European Macroeconomics & Governance
Read article Download PDF More on this topic
 

Policy Contribution

A green fiscal pact: climate investment in times of budget consolidation

Increasing green public investment while consolidating deficits will be a central challenge of this decade. A green fiscal pact would address this tension, but difficult trade-offs remain.

By: Zsolt Darvas and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: September 9, 2021
Read about event More on this topic
 

Past Event

Past Event

Conference on the Future of Europe: envisioning EU citizens engagement

Bruegel Annual Meetings, Day 3 - Panellists will discuss different options and what they may entail while revisiting the debates on the future of Europe at national and EU-level that have been conducted thus far.

Speakers: Caroline de Gruyter, Kalypso Nicolaïdis, Niclas Poitiers and György Szapáry Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1 Date: September 3, 2021
Read about event More on this topic
 

Past Event

Past Event

The role of the EU's trade strategy for an inclusive and sustainable recovery

Bruegel Annual Meetings, Day 3 - We are delighted to welcome Valdis Dombrovskis, Executive Vice President of the European Commission for An Economy that Works for People to talk about Europe's trade strategy.

Speakers: Valdis Dombrovskis, Alicia García-Herrero and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1 Date: September 3, 2021
Read about event More on this topic
 

Past Event

Past Event

An in-depth look at the Italian Recovery and Resilience Plan

Bruegel Annual Meetings, Day 2 - A discussion of the largest national recovery plan.

Speakers: Carlo Altomonte, Declan Costello and Zsolt Darvas Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
Read about event More on this topic
 

Past Event

Past Event

Blending physical and virtual: shaping the new workplace

Bruegel Annual Meetings, Day 2 - This panel will cover the changes the COVID-19 pandemic made to our workplaces, and what to expect in the near future.

Speakers: Nicholas Bloom, Michael Froman, Mario Mariniello, Sara Matthieu and Luca Visentini Topic: European Macroeconomics & Governance Location: Academy Palace Date: September 2, 2021
Read about event
 

Past Event

Past Event

European banks: under global competitive pressure?

Bruegel Annual Meetings, Day 2 - European banks have lost stature and remain generally low-profitability, low-valuation in comparison to their global peers. Is that a problem? If so, what can EU policymakers do to address it?

Speakers: José Antonio Álvarez Álvarez, Mairead McGuinness and Nicolas Véron Topic: European Macroeconomics & Governance, Finance & Financial Regulation Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
Read about event More on this topic
 

Past Event

Past Event

Conversation on the recovery programmes

Bruegel Annual Meetings, Day 2- In this session, we discuss the recovery programmes.

Speakers: Maria Demertzis, Henry Foy and Tadeusz Kościński Topic: European Macroeconomics & Governance Location: Palais des Academies, Rue Ducale 1 Date: September 2, 2021
Read article More on this topic More by this author
 

Podcast

Podcast

The EU recovery fund - state of play and outlook

Live from the Annual Meetings: Bruegel Director Guntram Wolff discusses the EU recovery fund, its state of play and outlook with Nadia Calviño, First Vice-President and Minister for Economy and Digitalization of Spain and Professor Karolina Ekholm of Stockholm University.

By: The Sound of Economics Topic: European Macroeconomics & Governance Date: September 1, 2021
Read about event More on this topic
 

Past Event

Past Event

The EU recovery fund - state of play and outlook

Bruegel Annual Meetings, Day 1- In The Sound of Economics Live session we will discuss the EU recovery fund, its state of play and outlook.

Speakers: Nadia Calviño, Karolina Ekholm and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: September 1, 2021
Load more posts