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According to a wage report released Tuesday by the Economic and Social Sciences Institute (WSI), affiliated with the union-linked Hans Böckler Foundation, workers’ purchasing power has fallen in 26 of the 27 EU countries. The only exception was Bulgaria, a low-wage country where real wages rose by 4.7 percent.
According to the research, the average purchasing power loss of the EU was 4.0 percent. In Germany it was 4.1 percent. Especially significant losses were experienced in Estonia (9.3%), Greece (8.2%) and the Czech Republic (8.1%).
High inflation rates are responsible for the decline in real wages. WSI wrote that while initially driven by higher import prices for fossil fuels and food, rising corporate profits now contributed significantly to the upward trend.
According to WSI experts, the share of wages in national income has decreased significantly due to the imbalance between wage and profit development. Across the EU, as well as in Germany, the wage share fell by around two percent between 2020 and the end of 2022. “In the midst of the crisis, there was a redistribution away from wages and in favor of capital income,” WSI researchers Thilo Janssen and Malte Lübke concluded.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
