[EMEA] Euro area wage pressures slightly rise while employee coverage declines

Updated figures from the European Central Bank (ECB) show that negotiated wage growth in euro area collective bargaining agreements is running at 2.3 per cent in 2026 and 2.7 per cent in the first quarter of 2027, The Brussels Times reports.

The ECB's wage tracker compiles information from active collective bargaining agreements in nine euro area countries. On July 29, the bank announced that it has been updated to include wage agreements signed up to the first week of July 2026, while its forward-looking horizon has been extended to the end of March 2027.

According to the ECB’s figures, negotiated wage pressures with “smoothed” one-off payments, such as bonuses or back-dated pay spread over 12 months, were estimated at 2.3 per cent for 2026, based on coverage of 44.3 per cent of employees in participating countries.

The same measure reportedly showed negotiated wage pressures of 2.7 per cent for the first quarter of 2027, based on 28.4 per cent employee coverage.

The ECB stated that the latest update was broadly unchanged compared with its June 2026 release, adding that new agreements had not materially altered the overall assessment for 2026.

It reportedly said that its “headline” wage tracker averaged 1.8 per cent in the first quarter of 2026, 2.1 per cent in the second quarter, and 2.6 per cent in both the third and fourth quarters.

Employee coverage in the tracker stands at 47.0 per cent in the first quarter of 2026, 45.7 per cent in the second quarter, 42.5 per cent in the third quarter, and 42.0 per cent in the fourth quarter, then falls to 28.4 per cent in the first quarter of 2027.

Source: The Brussels Times

Updated figures from the European Central Bank (ECB) show that negotiated wage growth in euro area collective bargaining agreements is running at 2.3 per cent in 2026 and 2.7 per cent in the first quarter of 2027, The Brussels Times reports.

The ECB's wage tracker compiles information from active collective bargaining agreements in nine euro area countries. On July 29, the bank announced that it has been updated to include wage agreements signed up to the first week of July 2026, while its forward-looking horizon has been extended to the end of March 2027.

According to the ECB’s figures, negotiated wage pressures with “smoothed” one-off payments, such as bonuses or back-dated pay spread over 12 months, were estimated at 2.3 per cent for 2026, based on coverage of 44.3 per cent of employees in participating countries.

The same measure reportedly showed negotiated wage pressures of 2.7 per cent for the first quarter of 2027, based on 28.4 per cent employee coverage.

The ECB stated that the latest update was broadly unchanged compared with its June 2026 release, adding that new agreements had not materially altered the overall assessment for 2026.

It reportedly said that its “headline” wage tracker averaged 1.8 per cent in the first quarter of 2026, 2.1 per cent in the second quarter, and 2.6 per cent in both the third and fourth quarters.

Employee coverage in the tracker stands at 47.0 per cent in the first quarter of 2026, 45.7 per cent in the second quarter, 42.5 per cent in the third quarter, and 42.0 per cent in the fourth quarter, then falls to 28.4 per cent in the first quarter of 2027.

Source: The Brussels Times