Most wage earners regain lost real income

The majority of Danish private sector employees’ purchasing power has largely recovered to pre-rapid inflation levels. Preliminary figures from the Confederation of Danish Employers show a 4.8 percent average wage increase in the third quarter compared to the previous year, outpacing inflation. Real wages in the employer association’s area have thus risen by 3.3 percent. Las Olsen, chief economist at Danske Bank, notes historically high wage increases and anticipates a return to normalcy with real wage growth slightly above one percent annually, depending on local negotiations. Jeppe Juul Borre from Arbejdernes Landsbank expects the wage boosts to drive private consumption, which constitutes nearly half of Denmark’s economy, and sees a strong outlook for further economic growth.