Wage increases are gaining momentum. As inflation is simultaneously falling rapidly, the highest real wage increases in ten years were recorded, according to the Mediation Institute's monthly figures.
New figures show that the preliminary wage outcome in the private and public sectors amounted to 4.0 and 3.1 percent, respectively, in June. However, wages are expected to have increased by 4.3 and 3.5 percent, respectively, when retroactive wages are paid out.
"The wage increase rate has slowed down somewhat compared to the beginning of the year, as the industry's cost marker has decreased from an annual increase rate of 4.1 percent to 3.3 percent," says the Mediation Institute's macroeconomist Petter Hällberg in a press release.
However, since inflation has fallen rapidly this year, to 1.3 percent in June, according to the KPIF measure, where housing costs are excluded, the real wage increase was at an unusually high level after a couple of years of decreasing real wage increases.
"Adjusted for inflation, wages increased by 2.7 percent compared to last year. Such a rapid increase in real wages has not been recorded since 2014. Even including the effects of increased mortgage interest costs, real wages increased and rose by 1.4 percent in June," says Petter Hällberg.
