August 30, 2024 06:29 GMT
SWEDEN: Real Wages Notably Higher in June As Inflation Receded
SWEDEN
Swedish real wage growth saw a notable uptick in June, owing to the sharp fall in headline CPIF inflation that month. The recovery in real wages should start to support consumption a little more in H2 2024, particularly as Riksbank rate cuts progress.
- The National Mediation Office (NMO) estimated that nominal wage growth was 4.0% Y/Y (vs 3.8% in May, 4.2% in April), driven by a 4.3% estimated rise in private sector wages and a 3.5% estimated rise in public sector wages.
- Statistics Sweden’s non-manual workers wage series – which is reported by Bloomberg – edged down in June to 4.5% Y/Y (vs an upwardly revised 4.6% prior).
- In April 2023, Swedish industrial unions agreed on a 2-year collective agreement whereby wages would rise by 4.1% in the first year and 3.3% in the second year. Wage outcomes in May and June 2024 therefore begin to reflect the second year of these agreements.
- The "estimates" referenced in this note "are forecasts of what the cyclical wage statistics are expected to show when all retroactive wage payments have been added and the statistics have become definitive, which happens 12 months after the first outcome" (per the NMO).
![](https://media.marketnews.com/sweden_nmo_june_112387b812.png)
192 words