WSI European collective bargaining report 2023/2024: Real wages still need to catch up after crisis losses

Thilo Janssen and Malte Lübker

No 97e, WSI Reports from The Institute of Economic and Social Research (WSI), Hans Böckler Foundation

Abstract: Real wages in the European Union continued their decline in 2023-despite an acceleration in nominal wage growth and falling inflation rates. For the current year, there are tentative only signs of a slow recovery of the purchasing power of wages. A resumption of real wage growth would stabilize the functional distribution of income and Trends in negotiated wage rates in the eurozone, 2000- 2023 Change from prior year, in per cent Source: European Central Bank (Indicator of negotiated wage rates) and European Commission, AMECO Database (current as of 15 May 2024), authors' calculations. strengthen domestic demand. However, even under this benign scenario, the crisis is not over from workers' point of view: They have borne the brunt of the real income losses associated with the energy price shock resulting from the Russian invasion of Ukraine. The lingering reduction in real wage levels means that wage policy still needs to catch up to contribute to a fairer distribution of the buren between labour and capital.

Date: 2024
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