The European Central Bank (ECB) unveiled its indicator of negotiated wages data for the Euro area’s first quarter of 2024 on Thursday, showcasing a notable uptick.
According to the data, negotiated wages within the Euro area surged at an annual pace of 4.69% during Q1 2024, marking a slight increase from the 4.50% growth observed in the final quarter of the previous year.
Despite this positive development, the market response to the EU negotiated wages data has been muted, with the Euro (EUR) maintaining its rebound near 1.0835 against the US Dollar (USD), showing a modest increase of 0.13% for the day.
Insight into ECB’s Negotiated Wage Growth Indicator
The ECB’s indicator of negotiated wage growth is computed for a select subset of countries, primarily comprising Germany, France, Italy, Spain, the Netherlands, Belgium, Finland, Austria, and Portugal within the Euro area. This indicator is derived from data concerning negotiated monthly earnings.
It’s noteworthy that the Euro area aggregate is constructed based on a blend of monthly and quarterly time series, utilizing non-harmonized country data. This approach provides a comprehensive overview of negotiated wage dynamics within the Eurozone, shedding light on labor market trends and potential economic implications.