Under pressure: Labour market and wage developments in OECD countries

The recovery from the COVID‑19 pandemic lost momentum in 2022, with employment and unemployment stabilising. Labour markets remain tight, despite signs of easing. In this context, the quality of jobs on offer has improved in some dimensions, but real wages are falling significantly in almost all OECD countries despite a pick-up in nominal wage growth. In most countries, profits have grown robustly, often more than nominal wages. Nominal minimum wages are keeping pace with inflation, but any real gains may fade rapidly if inflation remains high. In contrast, wages negotiated in collective agreements between employers or employers’ organisations and trade unions are reacting with some delay even in countries where the majority of workers are covered by a collective agreement, although a catch-up phase is expected in the coming quarters.