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12 01 2017
Real Wages and Average Earnings Grow in Berlin and Brandenburg

According to figures released by the Berlin-Brandenburg Statistics Office, real wages – meaning the inflation-adjusted gross monthly income of all employees, including bonuses – experienced noticeable increases in Berlin during the second half quarter of 2016. Wages in the state of Brandenburg also recovered in a brisk growth spurt not seen in recent years. At the same time, average earnings made substantial gains in either state.

Accelerating Real Wage Growth in Berlin

As the Berlin-Brandenburg Statistics Office stated, the findings of the Quarterly Earnings Survey caused the real wage index in Berlin to go up by 3.1 percent over prior-year quarter during Q2 2016. During the first quarter of 2016, the real wage growth had initially softened slightly (at a rate of plus 2.8 percent). The Statistics Office blames the regained momentum on the substantially faster increase in gross monthly earnings.

It was driven not least by the construction industry. This business sector registered a 5.7-percent growth in an above-average increase in earnings. Other sectors reporting above-average growth in earnings include education (plus 5.3 percent), arts, entertainment and recreation activities (plus 4.9 percent), other service activities (plus 4.5 percent), real estate activities (plus 4.4 percent), and accommodation and food service activities (plus 4.0 percent).

Berliners generally earned more in 2016 than they had as recently as the previous year, according to the latest employee compensation statistics. The latter suggest that the annual average earnings in the German capital rose to 32,478 euros, which implies a year-on-year increased by 1,274 euros.

It puts Berlin in seventh place in a ranking of all German states that is topped by Hamburg with an average of 39,201 euros, whereas Mecklenburg-West Pomerania brings up the rear with 25,828 euros.

Brandenburg, too, Reports an Upward Trend in Wages

The average earnings increased not just in the German capital but also in Brandenburg, the state that surrounds it on all sides. Here, the annual average earnings equal 27,306 euros now, an increase by 1,151 euros since 2015. During the second quarter of 2016, real wages in the state of Brandenburg continued to push up, rising by 2.9 percent year on year. And while consumer prices declined by 0.3 percent during the same period, monthly gross earnings grew by 2.6 percent.