Indeed Tracker Shows Broad-Based Wage Growth Moderation in April

The Eurozone wage tracker published by job listing company Indeed shows growth moderated to 3.02% Y/Y in April (vs 3.35% prior), its fourth consecutive deceleration. Also the 3-month moving average annual rate was slower at 3.36% (vs 3.69% prior).

• Slight revisions published alongside the April data due to an internal platform update do not have a material impact on the reported wage dynamics.
• The slowdown in wage growth was broad-based across major Eurozone countries.
• In Germany, the tracker printed at 3.39% Y/Y (vs 3.62% prior), its slowest yearly rate since September 2021, and 3.79% 3MMA (vs 4.08% prior).
• Spain, meanwhile, was the only major country where the yearly deceleration stalled, at 3.23%. The 3MMA rate however slowed to 3.46% (vs 3.93% prior), in its 8th consecutive decrease.
• France showed the most significant slowdown in the yearly rate (2.29% Y/Y vs 3.14% prior), while the 3MMA measure only pulled back slightly (2.82% Y/Y vs 3.07% prior).
• Italian data also suggests moderation in wage growth for April, at 1.89% Y/Y (vs 2.00% prior), though in the past this data is considered to be less reliable.
• The ECB projects compensation per employee growth will tick up to 4.8% Y/Y in Q2 (vs an estimated 4.4% in Q1, data not released yet) - April's Indeed data does not indicate such an uptick materialized at the beginning of the quarter.
• The further moderation in indicative wages will be another argument in favour of the more dovish cohort of the Governing Council ahead of deliberations on rate cuts beyond the expected first reduction in June.

MNI, indeed.com