The growth rate of average wages has decreased again in the previous month. In addition to average wage increases remaining above inflation, collectively bargained wage agreements for January 2021 show increases of 3.2 percent compared to 3.4 percent in December and an overall average of 3.8 percent for the year 2020. AWVN (the employer's association) expressed concern that wage agreements are continuing to be slow to respond to deteriorating economic conditions and uncertainty caused by the ongoing recession.
19 hours Ago
Economic Pressures and Planned Layoffs
Labour Conditions Advisors have found a significant increase in employers planning to eliminate jobs. AWVN believes this is primarily driven by the current level of economic uncertainty, coupled with the increased costs of labour and energy faced by many businesses.
In spite of these developments, the tight labor market allows most of the workers who have lost their jobs to find new jobs quickly; however, many of them will not receive equivalent salaries for the positions they have lost when they do secure new employment, particularly those working in manufacturing industries.
Declining Industrial Job and Wage Growth Trends
According to Statistics Netherlands, the collectively bargained wages are expected to increase by an average of 5.0 percent in 2025 compared to 2024; this represents a significant decrease from previous levels of collective wage growth. According to Statistics Netherlands, wages paid to workers under collective agreements rose an average of more than 6.
5 percent in 2024, representing the largest increase in wages in over 40 years.
AWVN has noted that even with the recent decline in wage growth, the rate of wage growth still exceeds the rate of inflation, which it considers an economic problem because it adds to the total amount of labour cost for employers. Furthermore, AWVN has stated that the number of high-wage industrial j.
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