Industry pulls off service sector with collective wage

Industry pulls off service sector with collective wage

According to a study, industrial wages have increased faster over the past 16 years than in the service sector. Salaries in the metal industry developed particularly well.

The gap between the tariffs in the service sector and industry has become significantly larger, according to a newspaper report. Between the years 2000 and 2016, the collective hourly wages of the metal and electrical industry had risen by a total of 51 percent, reported the Dusseldorf published "Rheinische Post", citing an evaluation of the employer-related Institute of German Business (IW). In public service, however, it was only 34.9 percent, in trade 36.9 percent.


Accordingly, only high wage increases in the metal industry existed in the chemical industry (49.4 percent). The authors of the study warn that wage differentials would make social care jobs increasingly unattractive from the point of view of employees. This increases the pressure on the civil service to pursue wage developments. 

"Wage increases beyond productivity gains would have to be financed through price increases," the IW authors write. Rising fees or higher contributions to nursing and health insurance in turn weakened the purchasing power of all employees.