Wage gap is narrowing in Europe, reveals new data

While ‘new’ Europe is continuing to close the wage gap with the older members of the EU club, women still suffer from wage discrimination across the Union, according to data published by the EU agency Eurofound on 20 August.

On average, wages have increased four times more in the new EU member states than in the EU 15. The Baltic States, Bulgaria and Romania top the ranking with rises reaching double figures, the report shows. 

The figures for the new Union members reveal “a distinctive upward trend,” Eurofound says, pointing out than the 8.5% pay rise in 2006 was followed by one of 10.5% in 2007. In comparison, wage increases have been far more moderate in ‘old’ Europe, with data showing a rise of only 3.1% last year, up from 2.9% in 2006. 

Over the last five years, few countries displayed a clear trend of nominal pay increases, with most varying up and down from year to year, the report said. A consistent upward trend in pay increases was nevertheless identified in Bulgaria and Lithuania and, to a lesser extent, Estonia and Latvia, while Slovenia and, to a lesser extent, Hungary, faced a continued downturn. In the EU 15, a relatively steady downward trend was recorded in France and Germany. 

The picture for employees in Western Europe becomes even gloomier when inflation is taken into account, bringing the rate of real wage increase close to a standstill at 0.2%, down from 0.8% in 2006. Although average real pay has also taken a downturn in the newer member states, figures still revealed nominal growth of 4.1% (down from 5% in 2006). 

Rising inflation has caused European Central Bank (ECB) President Jean-Claude Trichet to urge restraint in terms of wage increases. According to him, in the current climate, higher pay could further trigger rises in commodity prices (EURACTIV 20/07/08). 

The Eurofound report also revealed an ongoing gender wage gap, with salaries for women on average almost 16% lower than for their male counterparts. However, wages for men and women differ largely across Europe, with Slovakia displaying the largest gap (26.9%) and Slovenia the smallest (6.9%). 

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