MNI BRIEF: Eurozone Pay Gains May Have Peaked - Irish NCB

Wages in six euro area countries rose sharply in October, new data published by the Central Bank of Ireland shows, although continued uncertainty and a worsening economic outlook mean pay packet increases may have peaked despite tight labour market conditions.

The figures, based on 24 million job ads posted between 1 January 2018 and 31 October 2022, suggest recent wage growth was highest in Germany -- which boosted the minimum wage from EUR 9.82 to EUR 12.00 on October 1 this year -- at 7.1%. It was followed by a 5.0% uplift in France, 4.7% in Ireland, 4.2% in Italy, 4.0% in the Netherlands, and 3.5% in Spain. UK wages grew by 6.2% over the same period.

Wage growth was highest among lower-paid positions, such as community and social services; cleaning and sanitation; food preparation and services; driving; customer service; loading and stocking; retail; childcare; sales; and, installation and maintenance. The ECB has said it is closely monitoring euro area wage increases for signs they could contribute to above-target inflation over the medium-term.