Real wages set to fall across major European economies except Germany

Real wages are projected to fall in Italy, Spain, France, and the United Kingdom between the first quarter of 2026 and the first quarter of 2027, Euronews reported. Germany is expected to be the only major European economy among those cited to record growth in real wages over the same period, according to data from the OECD Employment Outlook 2026. [1]

In Italy and Spain, real wages are projected to remain below their early 2026 levels until at least the end of 2027, Euronews said. The outlet noted that geopolitical uncertainties and temporary increases in energy costs could significantly weaken labor markets in the future. [1]

Real wages refer to pay adjusted for inflation, which measures wages in terms of the amount of goods and services that can be bought. They contrast with nominal wages, which are unadjusted for changes in consumer prices. [3]

In separate market news, Morningstar reported that Germany led European stock market declines during the month of September. [2]