Very high inflation and low unemployment are driving German unions to seek big pay rises in this year’s collective negotiations. We think nominal pay growth will be in the region of 4-5% this year and 3-4% in 2023. Although this would result in substantial real wage cuts, it is above the level of around 3% which is compatible with the ECB’s inflation target.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.