European Wage Growth Slows at End of 2023: Bulgaria Outpaces EU Average

Data released by Eurostat reveals a notable deceleration in wage growth across the European Union (EU) and the eurozone during the final quarter of 2023. While the average hourly wage in the EU increased by 3.8%, representing a marked slowdown from the previous quarter, Bulgaria saw a notable rise of 11.9%, according to the latest figures.

The slowdown in wage growth is evident when comparing the final quarter of 2023 to the preceding one. In the third quarter, average hourly wages in the EU surged by 5.7%, while in the eurozone, the increase was 5.2%. However, by the end of the year, the pace had notably decelerated.

Despite this overall slowdown, Bulgaria stood out with a robust increase of 11.9% in average hourly wages, albeit lower than the 15.7% growth witnessed in the third quarter.

Among EU member states, Romania registered the highest increase in hourly wages at 16.9%, followed closely by Hungary (16.3%), Croatia (16.0%), and Poland (13.1%). Notably, Bulgaria ranked among the top performers in terms of wage growth within the EU.

Within the eurozone, Croatia led with a 16.0% increase in hourly wages, followed by Slovenia (12.5%), Lithuania (11.2%), Latvia (11.1%), and Estonia (10.9%). However, Italy experienced a slight decrease of 0.1%, while Germany saw a modest increase of 2.2%.