Wages and labour costs · Euro Area
Euro Area ECB Wage Tracker
The Euro Area ECB Wage Tracker measures how fast pay, or the total cost of employing people, is rising in the Euro Area.
- Importance
- Medium
- Currency
- EUR · euro
- Central bank
- The European Central Bank
Latest figures
The latest release for Q4, published on 19 December 2025, came in at 2.7%, up from 2.5% the time before (revised).
| Released | For | Actual | Consensus | Previous |
|---|---|---|---|---|
| 19 Dec 2025 | Q4 | 2.7% | – | 2.5% ® |
Why it matters
Wages are the largest cost for service businesses, so wage growth well above productivity growth turns into lasting inflation. Central banks watch it to judge whether inflation will return to target; strong wage growth tends to keep the European Central Bank hawkish.
How it is calculated
Pay data come from employer surveys, tax records or collective agreements; the release usually shows the change from a year earlier. Labour cost indexes include employers' social contributions and benefits.
Wage growth (yoy) = average pay ÷ average pay a year ago − 1
Real wage growth ≈ wage growth − inflationWhat changes mean
- Wage growth of about 3–3.5% is roughly consistent with 2% inflation when productivity grows about 1%.
- Compositional effects (low-paid workers losing jobs) can lift the average misleadingly.
Higher than expected: A higher figure than expected makes the European Central Bank more likely to keep rates high or raise them: it tends to support the euro and push bond yields up, and is often a weight on stocks.
Lower than expected: A lower figure than expected gives the European Central Bank room to cut or hold rates lower: the euro tends to soften and bond yields to fall.
A short history
The link between wages and inflation was described by A. W. Phillips in 1958 (the Phillips curve); it has weakened and strengthened over the decades but remains central to central-bank thinking.
Questions
What is the Euro Area ECB Wage Tracker?
The Euro Area ECB Wage Tracker measures how fast pay, or the total cost of employing people, is rising in the Euro Area.
What was the latest Euro Area ECB Wage Tracker?
2.7% for Q4, published on 19 December 2025.
Educational content only, not investment advice. Figures are the published results as recorded by our calendar; market reactions described are typical, not guaranteed.