Wages increased in the second quarter of the year

In the second quarter of 2023, Germany's wage landscape showed a mixed picture, with some sectors experiencing significant wage increases while others, notably the energy supply sector, saw a decrease.

According to the Federal Statistical Office, nominal wages increased substantially in financial and insurance services, freelance, scientific, and technical services, and other economic services. However, in the energy supply sector, nominal wages even fell by 0.2%. This trend, however, is a notable exception and has been a topic of concern for many.

The trend of wage disparity between different occupational groups continues to be a notable feature. Lower wage groups have benefited disproportionately from the wage increases in Q2 2023. On the other hand, professional groups such as top earners in executive positions, IT and technology specialists, medical professionals, finance experts, and others with higher median incomes and better wage growth prospects are expected to experience a larger advantage in real wages in the future.

The trend of German workers catching up in purchasing power has been ongoing for two years. Real wages in Germany fell significantly during the period of high inflation. However, the trend of real wage increases began after the end of high inflation, with real wages increasing by 1.9% compared to the same period last year in Q2 2023. This gradual process has gradually offset purchasing power losses from the years 2022 and 2023.

Malte Lübker, a minimum wage expert, states that inflation-adjusted wages are still below the level of the second quarter of 2019. This indicates that employees have experienced a long dry spell in terms of wage recovery. The Boeckler Foundation, a trade union-affiliated organization, calculates that wage losses have not been recovered as of the second quarter of 2025, compared to the second quarter of 2019.

The energy prices and subsequently consumer prices were driven up due to the Russian attack on Ukraine. Not all occupational groups in Germany are benefiting equally from the wage increases, and this disparity is a cause for concern. The statement by Malte Lübker underscores this point, highlighting the need for a more balanced approach to wage increases across different sectors.

In conclusion, while the trend of real wage increases in Germany is encouraging, there is still a long way to go, especially for those in sectors like the energy supply sector. The ongoing wage disparity between different occupational groups is a challenge that needs to be addressed to ensure a more equitable wage landscape in the future.