According to Petter Hällberg, the macroeconomist at the Mediation Institute, real wages increased at a similar rate for employees with and without mortgages. The initial preliminary wage outcome in the private and public sectors was 3.7% and 3.2%, respectively. However, according to the Mediation Institute’s model estimates, wages are expected to have increased by 3.9% in both the private and public sectors when the statistics become final.
Hällberg further stated that the wage growth rate has been higher than last year, despite the fact that the agreed wages are lower than in 2023. He noted that actual wages increased more slowly than agreed upon last year.
Real wages, calculated with inflation excluding mortgage costs (KPIF), increased by 2.4% compared to last year. Even when calculated with inflation including the effects of higher mortgage rates (CPI), real wages increased by 2.3% in October.
“Real wages have developed more slowly for wage earners with mortgages since the spring of 2022. But in October, real wages increased at almost the same rate for them as for wage earners without mortgage costs,” said Petter Hällberg.
This trend of wage growth and the impact of mortgage costs on real wages is a significant development in the labor market. It highlights the importance of understanding the complexities of wage dynamics and how they are influenced by various economic factors.
As we delve deeper into the data and analysis provided by the Mediation Institute, we can see the nuances of wage trends and their implications for different segments of the workforce. The comparison between wage earners with and without mortgages sheds light on the disparities in real wage growth and the challenges faced by those with additional financial obligations.
The fact that real wages have been increasing at a faster pace for both groups in recent months is a positive sign of economic recovery and stability. It indicates that despite the challenges posed by inflation and mortgage costs, workers are still able to see an improvement in their purchasing power.
However, the overall picture of wage growth and real wages is just one piece of the puzzle when it comes to understanding the broader economic landscape. It is essential to consider other factors such as employment rates, productivity levels, and inflationary pressures to get a comprehensive view of the current economic situation.
In conclusion, the analysis provided by the Mediation Institute offers valuable insights into the intricacies of wage dynamics and their impact on different segments of the workforce. By studying these trends and understanding the underlying factors at play, we can gain a better understanding of the current state of the labor market and make informed decisions about future economic policies.