Helsinki (01.06.2011 - Juhani Artto) Statistics for the 2011 January-March quarterly period show that the real incomes of wage and salary earners were 1.0 per cent below the level for January-March 2010. It was back in July-September 2007 when quarterly statistics showed the last previous negative trend, but one has to go back to 1993 to find negative figures on an annual basis.
When trying to assess 2011 as a whole, current data available suggests negative growth in respect of the real value of wages and salaries. Collective agreements signed since August 2010 have meant lower pay rises when measured against inflation.
Collective agreements, signed in August-December 2011 managed to raise wages and salaries by about 2 per cent or slightly below. However, new agreements signed this year have succeeded in improving nominal wages and salaries more than that, yet these gains are likely to be offset by continued growth in inflation. Economists are predicting that inflation in 2011 will exceed 3 per cent.
Circumstances where trade unions have tried to defend the real earnings of workers and salaried employees have been very demanding as the global financial and economic crisis caused an 8 per cent drop in the Finnish GDP. The economy has recovered but the level prior to the crisis has not yet been reached.