Collective wage increases slowing down; Up 4.5% in quarter 3

In the third quarter, wages in collective bargaining agreements increased by approximately 4.6 percent, Statistics Netherlands (CBS) reported on Thursday. A year earlier, the average wage increase was 6.3 percent. Quarter 3 was the fourth consecutive quarter that collective wages rose by less than a year earlier.

Government wages increased the least in the third quarter, rising by 3.1 percent. Healthcare and the private sector saw the biggest increases, at 5.1 and 4.8 percent, respectively.

Although wages are rising less rapidly, a 4.6 percent increase is still significant, CBS chief economist Peter Hein van Mulligen said, according to NOS. “For three years in a row, wages have been rising significantly, and now the increase again exceeded 4 percent. So, once again, many employees are making significant progress.”

Van Mulligen attributes the still-high increase to the tight labor market and agreements the trade unions made with employers to make sure wages keep pace with inflation. Because there are more vacancies than available workers, workers have more power in wage negotiations.

Around Budget Day last month, trade union FNV said it would push for wage increases of 6 percent as some workers’ purchasing power still hasn’t recovered from the high inflation of recent years. CNV said it would demand increases of 3.5 to 5 percent.