Key points:
- Euro area wage growth has accelerated. Wages and salaries advertised in Euro area job postings on Indeed rose 3.3% year-on-year in August, roughly in line with headline inflation.
- Labour demand has cooled further. The euro area Indeed Job Postings Index was 11% below its level from a year earlier as of 18 September.
Last month, we wrote that the Indeed Wage Tracker was suggesting a turning point in European wage growth, and the latest data support that reading. Wages and salaries advertised in euro area job postings on Indeed rose 3.3% over the year to August, lifting the three-month average of annual growth to 3.1% up from 2.3% as recently as May, and above both the US and Canada (2.5%). The pick-up isn’t universal, though. In the UK, advertised wage growth has held at around 4% through 2026, after a long moderation from its 2023 peak.
It’s doubtful that recent wage growth reflects a tightening labour market that would stoke inflation in Europe. While it is true that the past few months have shown improvement across a range of labour market indicators, the Indeed Job Postings Index (JPI) for the euro area remains on a downward trajectory, with 11% fewer postings than a year ago, as of September 18.
See our full European Labour Market Overview chartbook for a more comprehensive view of the European labour market. Other data, including the Indeed Wage Tracker, is regularly updated and can be accessed on our data portal.
