Europe's Unionized Wage Pressures

May 05, 2023 12:30 AM ET, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Neuberger Berman
3.16K Followers

Summary

  • For the first time in over a decade, labor unions have leverage - and fully intend to take advantage of it.
  • Despite historically outsized wage settlements, real wages remain negative and are unlikely to be positive for some time.
  • Barring an imminent deep recession, we believe significantly higher interest rates compared to the last decade will give fixed-income investors the chance to generate higher income for longer.

Antique Vintage Map of Europe Selective Focus Sepia

PeskyMonkey

By Maximilian Korell

Inflation is giving European labor unions a powerful negotiating tool and wage stagnation appears far away. Are policymakers right not to be alarmed?

"A voluntary process through which employers and workers discuss and negotiate their relations."

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Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 23 countries, Neuberger Berman’s team is more than 2,100 professionals. For five consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm has built a diverse team of individuals united in their commitment to delivering compelling investment results for our clients over the long term. That commitment includes active consideration of environmental, social and governance factors. The firm manages $323 billion in client assets as of March 31, 2019. For more information, please visit our website at www.nb.com.For important disclosures: https://www.nb.com/disclosure-global-communications  Contact Us: Advisor Solutions (877) 628-2583 advisor@nb.com RIA & Family Office (888) 556-9030 riadesk@nb.com

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