The price escalation reduces the impact of the wage increase by 50%

The successive salary increases carried out by the Executive of Pedro Sánchez, placing the average salary in Spain at 1,751 euros per month, have not prevented purchasing power from being 3.1% below that of 2008 due to the upward trend in prices, pronounced since the end of 2021, according to the VII Annual Adecco Monitor on Salaries.

Despite the fact that the average salary is at an all-time high thanks to the rise of 6.6% compared to the previous year, the variation in consumer prices (CPI) has limited its effect on purchasing power, which only increases in 3.4% and remains below that of the previous economic crisis.

After three consecutive years of falls in the CPI from 2014 to 2016, something that had not happened since 1933, came three years of moderate increases in consumer prices in the 2017-2019 triennium. In 2020 there was a slight drop in prices that gave way to a growing increase throughout 2021, which also continues in 2022 due to the effect of the pandemic, the scarcity of raw materials and the invasion of Ukraine.

The extension of the ERTE during 2020 in the context of the pandemic and confinement, which consider their beneficiaries as employed in the labor market according to official statistics, for which the 3 million employees in this situation condition the largest nominal fall in 70 years that was reached in 2020 and the highest rise since 1993 in 2021, when the number of ERTEs began to drop.

By sector, the average wage in industry (which also includes extractive activities and those related to energy) fell in 2020 more than the average (-3.6%) and recovered more moderately in 2021 (+5 ,1%). In 2021 it reached 1,973 euros per month, which, however, is its maximum historical value.

In the case of the services sector, the greatest increase corresponded to Hospitality (+26.3%). However, it was not enough to compensate for the fall of the previous year, which had been the deepest (-33.5%). Something similar happened with Artistic and recreational activities, whose average remuneration rose by 14.8% in 2021, after having fallen by 14% the previous year.

Among the five service activities that in 2020 showed an increase in their average salary, information and communications obtained the best result, with an increase of 5.2%. It was followed by public administrations and education, which in both cases had an increase of 2.7%. Finance and insurance exhibits the highest average remuneration in the services sector, with 3,335 euros, which is also the second highest of all activity sections. The average salary in the Hospitality Industry is the only one that is below one thousand euros, with an average in 2021 of 924 euros. Thus, it continues as the smallest among all activity sections.

In the last five years, the average wage has lost purchasing power in medium-sized and large companies, but it has gained in smaller ones. Specifically, compared to an accumulated loss of 3.3% in the purchasing power of the average salary of companies with 200 or more employees, in medium-sized companies there was a fall of 0.9%, while in small ones there was achieved a gain of 0.9%.

Lastly, the breakdown of the total average salary between the two types of working day shows that, over the last five years, the purchasing power of the average full-time salary fell (-1.8%), while which increased that corresponding to the average part-time salary (+1%).

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