German wages rise at record pace
Martin Arnold in Frankfurt
German wages rose at a record annual pace of 6.6 per cent in the second quarter, giving a much-needed boost to consumers’ spending power while also fuelling concerns about inflation being pushed up by rising labour costs.
The increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since such data started to be collected in 2008. It meant German annual wage growth exceeded the country’s consumer price inflation rate — which was 6.5 per cent in the period — for the first time since 2021.
Pay levels were boosted by increases to the minimum wage as well as bonuses awarded by many companies to cushion the impact of higher inflation, according to the federal statistical office.
So increasing the minimum wage works and doesn’t actually torpedo the economy and cause “capital flight” – even in periods of high inflation. Curious!
It’s funny, isn’t it.
UK is similar. GDP do nothing, or maybe even go down, but wages up at record rates.
Makes you question why we give so much of a fuck about the GDP number, to the point where it seems to dominate all politics.
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Article:
German wages rise at record pace
Martin Arnold in Frankfurt
German wages rose at a record annual pace of 6.6 per cent in the second quarter, giving a much-needed boost to consumers’ spending power while also fuelling concerns about inflation being pushed up by rising labour costs.
The increase, which compared with wage growth of 5.6 per cent in the previous quarter, was the highest since such data started to be collected in 2008. It meant German annual wage growth exceeded the country’s consumer price inflation rate — which was 6.5 per cent in the period — for the first time since 2021.
Pay levels were boosted by increases to the minimum wage as well as bonuses awarded by many companies to cushion the impact of higher inflation, according to the federal statistical office.
So increasing the minimum wage works and doesn’t actually torpedo the economy and cause “capital flight” – even in periods of high inflation. Curious!
It’s funny, isn’t it.
UK is similar. GDP do nothing, or maybe even go down, but wages up at record rates.
Makes you question why we give so much of a fuck about the GDP number, to the point where it seems to dominate all politics.