Spain | Where are wages headed?

Wages will attract close attention in the coming months. First, because rising inflation is placing wages under strain. Second, because there is uncertainty as to how much bargaining power employees and employers will have.

Key points

• Key points:
• If there is a ready supply of labor to fill vacancies at current wages, the rise in demand will take the form of an increase in hours worked.
• But if people of working age do not see having a job as an attractive proposition, companies will have to draw them in with higher pay.
• There is uncertainty as to how collective bargaining will reflect expected changes in labor laws.

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