Wage growth falls towards four per cent
Provisional CBS figures point to further cooling in collective labour agreement wage growth.
Collective labour agreement wages are still rising clearly, but the pace is slowing. The provisional CBS monthly figures for July and August 2026 come to 3.9 per cent year-on-year; a definitive quarterly figure for the third quarter was not yet available in the public CBS publication consulted.
Wage growth is therefore cooling further after the exceptionally strong increases of recent years. In the third quarter of 2024, collective labour agreement wages were still 6.8 per cent higher than a year earlier, according to CBS. In the third quarter of 2025, the figure was 4.6 per cent.
The CBS series for 2026 shows that the increase was 4.3 per cent in January and rose to 4.5 per cent in March. The pace then gradually fell: 4.3 per cent in April, 4.2 per cent in May and June, and 3.9 per cent in July and August. These are provisional figures and comparisons with the same month a year earlier.
Wage growth thus remains higher than inflation in the first half of the year. CBS reported a real collective labour agreement wage increase of 2.0 per cent for the first quarter. This means that collective labour agreement wages rose faster on average than consumer prices, although the average says nothing about the purchasing power of each individual household.
For employers, a lower rate of growth does not automatically mean that labour costs are falling. In addition to collective labour agreement wages, companies pay employer contributions, such as contributions for pensions, incapacity for work and healthcare. That development may differ from wage growth itself and also varies considerably by sector.
The figures mainly indicate the direction of the labour market, not the outcome of individual negotiations. In sectors facing staff shortages, wages may rise faster than the national average, while companies and institutions with limited financial resources have less scope for wage increases. The definitive CBS quarterly figure still has to supplement the provisional monthly series.
One story, several perspectives
What is established
- The provisional CBS figures show a 3.9 per cent increase in collective labour agreement wages for July and August 2026.
- Wage growth stood at 4.5 per cent in the first quarter of 2026.
- Collective labour agreement wages are averages and do not indicate what every employee receives.
Left
Arguments Wage growth is falling short of what is needed to give employees greater long-term security, especially after years in which housing and everyday expenses have become significantly more expensive. Stronger collective labour agreements and higher wages can also support demand in the economy.
Values A more equal distribution of income, financial security and strong collective bargaining.
Consequences Employers face higher costs, but employees have more disposable income. Without wage growth, purchasing power may become more unevenly distributed.
Centre
Arguments Wage formation should reflect inflation, productivity and the capacity of sectors to bear the cost. A gradual cooling can help prevent renewed price pressures, as long as real wages do not fall behind again.
Values Purchasing power, macroeconomic stability and consultation between employers and employees.
Consequences A moderate pace can protect employment, but requires sector-specific solutions.
Right
Arguments Wage formation should primarily be left to employers and employees and not be steered through politically imposed standards. Wage growth that is too rapid can put pressure on companies, particularly smaller businesses.
Values Entrepreneurial freedom, affordability and a competitive economy.
Consequences Lower wage growth limits cost increases, but can make it harder to attract staff if the labour market remains tight.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved with corrections · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The direction of the development is well supported by the CBS monthly figures. The exact quarterly percentage has not been confirmed and has therefore not been used as an established fact.
- confirmed Collective labour agreement wages rose by 3.9 per cent year-on-year in July and August 2026. — Provisional CBS figures in Statistical Bulletin 2026-09. source
- confirmed Collective labour agreement wages rose by 4.5 per cent in the first quarter of 2026. — CBS publication on the first quarter of 2026. source
- uncertain The definitive quarterly figure for the third quarter was not visible in the CBS publication consulted. — The table consulted ran through August; publication dates may change. source
1 correction(s) applied
- Was: Collective labour agreement wages rose by 4 per cent in the third quarter.Now: Provisional CBS monthly figures for July and August point to wage growth of 3.9 per cent; the definitive quarterly figure had not yet been checked. (The exact quarterly figure could not be confirmed in a public primary source.)