Spanish workers face an ongoing challenge: The purchasing power of their salaries is diminishing. Since 2019, they have lost an average of 236 euros per year in purchasing power. This trend is primarily due to steadily rising inflation surpassing wage development.
The Gap Between Wage Development and Inflation Widens
The latest annual Adecco Wage Monitor, based on data from the quarterly labor cost survey and Eurostat, reveals that wages have been unable to keep pace with the sustained price increases over the past six years. Since 2019, Spanish workers have cumulatively lost 1% of their purchasing power, equivalent to an average annual reduction of 236 euros.
This deterioration in purchasing power is calculated as the difference between the increase in consumer prices and the development of the average wage. In 2024, the Consumer Price Index (CPI) rose by 2.8% compared to the previous year. Although this increase is lower than the 3.5% in 2023 and 8.4% in 2022, it marks the fourth consecutive year of rising living costs.
A Glimmer of Hope in 2024: A Slight Recovery in Purchasing Power
Despite the overarching trend, the purchasing power of the average salary improved by 1% in 2024, representing an annual gain of 247 euros. In absolute terms, the average salary in Spain reached 1,988 euros per month in 2024, according to data from the National Institute of Statistics (INE). This represents a 3.9% increase compared to the 1,914 euros per month in 2023, which means 74 euros more per month and an additional 885 euros per year. This increase continues an eight-year trend of sustained wage growth, with the only exception being 2020, which saw a 3% decline due to the pandemic’s impact.
Economic Sectors Compared: Who is Most Affected
Analysis by economic sector shows that the construction sector was the most affected, with a purchasing power loss of 3.6% between 2019 and 2024. The industry sector followed closely with a 3.3% decrease. The services sector, on the other hand, experienced a smaller loss of 0.2% during the same period.
