Wage growth slows but remains above inflation; High-paying industrial jobs disappearing

Average wage growth fell again last month. New collective labor agreements saw increases of 3.2 percent in January, down from 3.4 percent in December and an average of 3.8 percent last year. Employers’ association AWVN criticized that wage rises still outpace inflation and that collective deals “react very slowly to deteriorating economic conditions and geopolitical uncertainty.”

The labor conditions advisor notes “a sharp rise in employers planning to cut staff.” AWVN attributes this to economic uncertainty and increasing wage and energy costs.

Thanks to a tight labor market, most laid-off workers can find new jobs quickly. “AWVN cautions, however, that high-paying industrial jobs are disappearing, while the positions available pay significantly less. It is highly questionable whether replacement jobs with similar salaries will materialize for those affected.”

Data from Statistics Netherlands show that collectively-bargained wages in 2025 increased by around 5.0 percent compared with 2024. While still substantial, this growth is well below the exceptional rises of previous years. In 2024, collectively-bargained wages climbed by more than 6.5 percent on average, the highest increase in over 40 years, according to Statistics Netherlands.

Even though wage increases are moderating, they remain above the rate of inflation in the Netherlands, a trend that AWVN views with concern because it adds to rising labor costs.

The AWVN warns that high-paying industrial jobs are vanishing, and the new roles taking their place generally offer much lower wages. The association says it is unclear whether similarly well-paid jobs will return over time.

A significant rise is seen in the number of employers intending to cut staff, fueled by both economic uncertainty and the combined pressure of rising wages and energy costs.