Wages in decline in Italy: -7.5% in the first quarter of 2023 according to OECD data


“The loss of purchasing power – warns the international body – has a stronger impact on low-income families, who have less ability to cope with rising prices through savings or debt”

“Italy is the country that has recorded the sharpest decline in real wages among the main OECD economies”. The data is reported by the OECD in the 2023 Employment Outlook presented today in Paris. “At the end of 2022 – warns the international body – real wages had fallen by 7% compared to the period before the pandemic. The decline continued in the first quarter of 2023, with a decrease of 7.5% on an annual basis”.

More generally, the OECD underlines in the report, “Russian aggression against Ukraine has contributed to a surge in inflation, which has not been accompanied by a corresponding growth in nominal wages. As a result, real wages are declined in virtually all OECD countries. On average, in the 1st quarter of 2023 real wages decreased by 3.8% compared to the previous year in the 34 OECD countries where data are available”. “The loss of purchasing power – warns the OECD – has a stronger impact on low-income families, who have less ability to cope with price increases by saving or borrowing”.

Collective agreements

“In Italy, wages set by collective agreements decreased in real terms by more than 6% in 2022”, reports the international body, and “this is a particularly significant drop if we consider that, unlike other countries, collective bargaining covers, in theory, all employees”.

According to OECD projections, “nominal wages in Italy will increase by 3.7% in 2023 and 3.5% in 2024, while inflation is expected to reach 6.4% in 2023 and 3% in 2024”.



Source-tg24.sky.it