Wage Deals Stay Above Inflation Despite Economic Fears
Wage growth in the Netherlands slowed in January, but pay rises still remain higher than inflation, raising concerns about rising labor costs and the loss of high-paying industrial jobs.
New collective labor agreements recorded average wage increases of 3.2 percent in January, down from 3.4 percent in December and an average of 3.8 percent last year. The employers’ association AWVN criticized that wage agreements continue to rise faster than inflation and adjust too slowly to worsening economic conditions and geopolitical uncertainty.
According to AWVN’s labor conditions advisor, there has been a sharp increase in the number of employers planning to cut staff. The association links this trend to economic uncertainty and the growing burden of higher wages and energy costs. While many workers who lose their jobs can still find new employment quickly due to a tight labor market, the quality of available jobs is changing.
AWVN warned that high-paying industrial jobs are disappearing and being replaced by positions that pay significantly less. It said it is unclear whether new jobs with similar salary levels will emerge for workers affected by layoffs, raising doubts about long-term income security for industrial employees.
Data from Statistics Netherlands show that collectively agreed wages rose by about 5.0 percent in 2025 compared with 2024. Although this remains a strong increase, it is well below the exceptional growth seen in 2024, when wages jumped by more than 6.5 percent, the highest rise in over 40 years. Despite the slowdown, wage growth still exceeds inflation, a trend that AWVN says continues to push labor costs higher and threatens future job stability.