Euro Area Wage Growth Accelerates to 3.4% in First Quarter of 2026, Eurostat Says

Wage growth across the Euro Area accelerated in the first quarter of 2026, highlighting continued resilience in the region’s labor market despite ongoing economic uncertainty.

According to data released by the European Union’s statistical office, Eurostat, wages and salaries increased 3.4% year-over-year during the January-to-March period, up from 3.1% recorded in the fourth quarter of 2025.

The strongest annual wage increases were observed in mining and quarrying, where compensation rose 5.7%, reversing a 1.5% decline in the previous quarter. Other sectors posting notable gains included real estate activities (4.8%), education (4.4%), and construction, where wage growth accelerated to 4.4% from 3.8% previously.

Manufacturing wages also strengthened, rising 3.6% annually, compared with 2.6% in the previous quarter.

Among the Euro Area’s largest economies, wage growth accelerated across most major markets. Germany reported a 3.4% increase, up from 2.7%, while France recorded growth of 1.8%, compared with 1.4% in the previous quarter. In Italy, wages rose 2.8%, up from 2.2%, while Spain posted one of the strongest gains among major economies at 5.1%, accelerating from 3.8%.

The Netherlands was the exception among the region’s largest economies, with wage growth slowing to 3.2% from 4.5% in the previous quarter.

The latest figures suggest labor market conditions remain relatively tight across much of the Euro Area, a key factor closely monitored by policymakers as they assess inflation trends and the outlook for monetary policy.