Among major economies, Italy remains the country with the steepest decline in wages compared to the pre-pandemic period. "In the first quarter of 2024, real wages - that is, net of inflation - are still 6.9% lower than in the fourth quarter of 2019," explains the OECD Employment Report. Italy is the worst country in the euro area, where Germany's -2% and France's +0.1% are recorded, and it is third to last among the 38 OECD members, surpassed at the bottom of the ranking only by the Czech Republic and Sweden. While there is widespread concern in Europe that wage growth could have an effect on inflation, this risk is not justified in Italy, as the slight recovery in wages is below the OECD average, and will remain so in the next two years.
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