In the third quarter of 2018, wage rates in Germany rose by an average of 3.7% compared to the same quarter of the previous year, according to data from the Federal Statistical Office (Destatis).

The monthly wage rate growth including special payments (which one-time payments, annual special payments or collectively agreed additional payments), varied greatly between sectors. 

In the third quarter of 2018, monthly wage increases rose above average in, among other industries, water supply, disposal and removal of environmental pollution (7.6%), arts, entertainment and recreation (5.5%), energy supply (5.0%) and health and social work (4.8%).  The high increase in the wage rates for these sectors is mainly due to pay rise of 3.19% after an agreement by the collective bargaining parties for the public service of the federal and municipal governments (TVöD).

Wage rate earnings also rose in the information and communication sector (2.9%), in agriculture and forestry (2.7%), in trade (2.3%) and in mining (2.0%).

The services sector saw an increase of 3.7%. This sector includes the ‘other economic services’ (3.0%), which, according to BAP (Federal Employers Association of Personnel Service Providers), is attributable to the temporary employment sector.

Separately last month, Germany’s Federal Employment Agency published that the number of unemployed in Germany fell to 2.186 million in November, the lowest level in any November since reunification. The unemployment rate stood at 4.8% in November, a decrease of 0.1% from the previous month.