Pay developments in Europe

Stock.xchngEurofound has just published its annual update on “Pay Developments in Europe 2011”. According to the study agreed pay increases are not enough to maintain purchasing power in Europe.

Workers in the Czech Republic, Norway and Sweden saw their average collectively agreed pay increase, in real terms, during 2011, according to the latest Eurofound annual update on pay developments in Europe, while workers in all other countries saw their pay reduced in real terms. The pay reductions were primarily due to inflation, since the growth in consumer prices outpaced the collectively agreed pay increases in almost all countries. The gender pay gap remains wide across all countries.

From the 13 European countries that are covered in the report, Norway experienced the highest nominal collectively agreed pay increase (4.3%), followed by Slovakia (3.7%) and the Czech Republic (2.9%). Although, the agreed increases in Austria, Netherlands, Norway, Slovakia and Spain were higher in 2011 than in 2010, workers in Belgium, Germany and the UK did not see any considerable change year on year. In the Czech Republic, Italy, Sweden, Malta and Portugal, agreed nominal pay was lower in 2011 than in 2010.

The report also examines collectively agreed pay increases in three sectors, manufacturing (chemicals), services (retail) and the public sector (civil service), respectively.

The report is available here.