Eurozone Wages Grow the Least in 3 Years

Wages across the Eurozone rose 3.0% year-on-year in the third quarter of 2025, the least since Q3 2022, and slowing from 3.7% in the previous quarter. Among the region’s largest economies, wage growth decelerated notably in Germany (3.6% vs. 4.2% in Q2 2025), France (1.3% vs. 1.4%), Italy (2.4% vs. 3.4%), Spain (2.0% vs. 3.4%), and the Netherlands (3.6% vs. 6.3%).

Wages across the Eurozone rose by 3.7% year-on-year in the second quarter of 2025, up from a 3.4% increase in the previous quarter. Among the region’s largest economies, wage growth accelerated notably in Germany (3.8% vs. 2.9% in Q1) and the Netherlands (5.9% vs. 5.7%). By contrast, growth eased in Spain (3.4% vs. 3.8%), Italy (3.4% vs. 4.0%), and France (1.4% vs. 1.9%).

Wages across the Eurozone rose by 3.4% year-on-year in the first quarter of 2025, easing from a 4.1% increase in the previous quarter. This marked the slowest pace of wage growth since Q3 2022, offering some relief to the European Central Bank as it adopts a cautious, wait-and-see stance amid waning inflationary pressures and muted economic momentum. Among the region’s largest economies, wage growth decelerated notably in Germany (2.8% vs 4.4% in Q4 2024), Italy (3.9% vs 4.4%), and the Netherlands (5.6% vs 6.2%). In contrast, Spain and France saw modest accelerations, with wages rising 3.7% (up from 3.4%) and 1.9% (up from 1.8%), respectively.