Wages grow slowly in 2025: What does that mean for the employees?
Wages grow slowly in 2025: What does that mean for the employees?
The latest developments on the wage market in the euro zone show a clear trend: in 2025 wages grow slower than in the previous year. According to the Vol.at , the collective bargaining in the monetary union is to increase on average by 3.1 percent after they rose by 4.7 percent in 2024. This forecast is regarded by the European Central Bank (ECB) as part of its monetary policy strategies that aim to achieve the inflation goal of two percent.
The ECB observes wage growth as an important indicator of inflation and is optimistic that the new wage figures will support their predictions on inflation development. This assessment goes hand in hand with the recently continued monetary policy relaxation course of the ECB, which has reduced its key interest rate for the eighth time since mid -2024.
wage forecasts in harmony with the collective agreements
The ECB's wage forecast is based exclusively on active collective agreements that apply to 48.8 percent of employees in the participating countries. Compared to 2024, when this value was 47.4 percent, there is a small increase. These developments are particularly relevant because the ECB strives for an inflation of two percent as the ideal value for the euro zone.
A more comprehensive consideration of wage growth in the euro zone reveals that there have not only been declines in recent months. According to The standard climbed the wages in the third quarter by 5.42 percent. The increase in collective agreements was also remarkable in the second quarter with 3.54 percent in the previous year.
outlook and economic relevance
The wage development is followed carefully by the ECB because it plays a key role in influencing inflationary tendencies. Wages that grow around three percent are considered compatible with the ECB's inflation goal, one considers the latest developments in the wage sector and the associated economic framework. Experts see both opportunities and challenges for economic stability in the region in a slow increase in wages.
In summary, it can be said that wage growth 2025 is slower than in previous years, which is significantly influenced by the ECB's monetary policy measures. With a view to the coming time, it remains to be seen how these developments will affect the labor market and the general economy in the euro zone. Further details about the wages in the euro zone can also be found in an article from SPIEGEL .| Details | |
|---|---|
| Ort | Eurozone, Europa |
| Quellen | |