Wages rise below inflation

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Wages must increase. Many companies are desperately looking for workers. There are fewer unemployed than before the 2008 financial crisis. According to economics textbooks, these are the best conditions for increasing wages: what is scarce becomes more expensive. And yet vice versa: In 2022, employees have 1.3 percent less money in their wallets. This is indicated by the “Tages-Anzeiger” rating.

inflation problem

One of the reasons is inflation. In 2022 there was an average of 1.5 percent more wages – inflation of 2.8 percent ate it up again.

It is noteworthy that wages have increased only below average since 2011 in sectors most complained of about staff shortages, such as construction, gastronomy or health care.

There are several reasons for this: In the health care system, for example, there are strict pay systems that often only allow wage increases through academic degrees. However, those who continue their education generally move to the nursing bureaucracy and therefore fall short in nursing.

Tips for higher wages

Pay transparency across hierarchical levels has a positive impact on wages. Knowing what my boss earns benefits the entire company. Because this increases incentives for promotion and therefore performance.

There is another thing that is often forgotten: The biggest increases in wages occur when you change jobs.

Source :Blick