WSI European collective bargaining report 2022/2023 : real wages collapse across Europe due to inflation shock

With real wages falling by 4.0 % in 2022, workers in the European Union suffered an unprecedented loss in purchasing power. The reason for this was the rapid increase in consumer prices, behind which nominal wage growth fell significantly. Meanwhile, inflation is no longer driven by energy import prices, but by domestic factors. The increased profit margins of companies are a major reason for persistent inflation. In this difficult environment, the trade unions are faced with the challenge of securing real wages - and companies have the responsibility of making their contribution to returning to the path of political stability by reducing excess profits.