Euro Area EUR

Euro Area Wage Growth YoY

Impact:
Low
Source: EUROSTAT

Latest Release:

Date:
Surprise:
-0.2%
Actual:
3%
Forecast: 3.2%
Previous/Revision:
3.8%
Period: Q3

Next Release:

Date:
Period: Q4
What Does It Measure?
The Euro Area Wage Growth YoY measures the annual change in wages paid to workers across the Eurozone, explicitly focusing on the growth rate of gross wages per employee. It assesses key areas including labor costs, consumer purchasing power, and potential inflationary pressures within the economy.
Frequency
This indicator is released quarterly, typically published about one to two months after the end of the quarter, and it is presented as a final figure.
Why Do Traders Care?
Traders monitor wage growth closely as it directly impacts inflation expectations and consumer spending, influencing monetary policy decisions made by the European Central Bank (ECB). Higher-than-expected wage growth can be seen as bullish for the Euro and equities, signaling economic strength, while lower growth may have bearish implications, suggesting weaker consumer spending potential and lower inflation expectations.
What Is It Derived From?
Wage growth is derived from data collected through national labor market surveys across Eurozone member countries, which compile information on employee remuneration. This includes gross wages before taxes and other deductions and typically incorporates responses from a diverse range of sectors and occupations to ensure comprehensive coverage.
Description
The Wage Growth YoY figure compares the current wage levels to those of the same period in the previous year, providing insights into long-term trends and changes in worker compensation. This year-over-year comparison eliminates seasonal variations, allowing for a clearer understanding of how wages are evolving in the context of overall economic conditions.
Additional Notes
Wage growth is considered a lagging economic indicator, as it reflects past economic performance and can signal shifts in consumer sentiment and economic stability. Moreover, its relationship with broader economic trends, such as inflation and employment levels, makes it a critical component for understanding the overall economic landscape in the Eurozone.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for Euro, Bullish for Stocks. Lower than expected: Bearish for Euro, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
3%
3.2%
3.8%
-0.2%
3.7%
3.7%
3.5%
3.4%
3.7%
4.1%
-0.3%
4.1%
4%
4.3%
0.1%
4.4%
4.5%
4.9%
-0.1%
4.5%
3.2%
5.2%
1.3%
5.3%
2.8%
3.2%
2.5%
3.1%
4.6%
5.2%
-1.5%
5.3%
4.2%
4.6%
1.1%
4.6%
4%
4.9%
0.6%
4.6%
3.3%
5%
1.3%
5.1%
2.5%
3%
2.6%
2.1%
4.1%
3.2%
-2%
2.7%
3.4%
1.5%
-0.7%
1.5%
3.3%
2.2%
-1.8%
2.3%
1%
-0.5%
1.3%
-0.4%
3.6%
2.1%
-4%
2.2%
4.6%
3.5%
-2.4%
3.5%
2.4%
2.2%
1.1%
2.2%
3.2%
4.5%
-1%
5.2%
-1%
3.9%
6.2%
3.4%
2.1%
2.4%
1.3%
2.3%
2.4%
2.6%
-0.1%
2.6%
2.6%
2.8%
2.7%
2.3%
2.7%
0.4%
2.3%
2.5%
2.3%
-0.2%
2.4%
2%
2.1%
0.4%
1.9%
2%
1.8%
-0.1%
1.8%
1.8%
1.6%
1.7%
1.8%
1.6%
-0.1%
1.6%
2.1%
2.1%
-0.5%
2%
1.8%
1.3%
0.2%
1.4%
1.7%
1.6%
-0.3%
1.6%
1.7%
1.5%
-0.1%
1.6%
1.1%
0.9%
0.5%
0.9%
1.9%
1.7%
-1%
1.8%
1.5%
1.5%
0.3%
1.5%
1.3%
1.5%
0.2%
1.4%
2%
2%
-0.6%
1.9%
1.7%
2%
0.2%
2.2%
1.1%
1.1%
1.1%
Broker Rebates