Two out of three companies are increasing salaries

Dusseldorf Many companies in Germany will spend more money on staff this year than in previous years. This is suggested by a recent survey by the Willis Towers Watson (WTW) consultancy. According to this, 62 percent of the companies plan with higher salary budgets.

According to the evaluation, wage drivers are primarily the shortage of skilled workers, but also increased expectations on the part of employees and inflation. In total, WTW surveyed 699 companies from Germany online between April and May.

Economists have been observing with suspicion for some time what employees should be happy about. You see the German economy at a crossroads in a so-called wage-price spiral. This arises when salaries make products and services so expensive that employees demand higher wages – which again causes the prices of products manufactured in this country to rise.

As recently as July, Clemens Fuest, President of the Munich Ifo Institute, said: “We are currently at a point where it is decided whether there will be a wage-price spiral.”