Sophie Binet, general secretary of CGT, criticizes the government’s neglect of employees, labeling it an insult to those struggling to make ends meet. Despite a nominal salary increase of 4% in 2023, inflation has outpaced this growth, leading to a 0.8% decline in real purchasing power. While lower earners have seen some protection due to minimum wage adjustments, overall salary trends since 2020 show a decrease in various sectors, highlighting ongoing economic challenges.
Government’s Neglect of Employees Highlighted
Sophie Binet, the general secretary of the CGT, has voiced her outrage regarding the government’s indifference towards employees. On January 23, she described the situation as an ‘insult’ to those who diligently rise early each day, working hard only to struggle to make ends meet. Binet emphasized that as of now, many employees have yet to recover their salary levels from before 2020, underscoring the ongoing economic challenges faced by the workforce.
Salary Trends: A Closer Look
The decline in salaries since 2020, especially when compared to inflation, raises significant concerns. Recent findings from the National Institute of Statistics and Economic Studies (Insee) reveal that while the average net salary for full-time employees reached 2735 euros per month in 2023, this figure represents a mere 4% increase. However, this increase must be viewed against a backdrop of persistent inflation, which stood at 4.9% in 2023, following 5.2% in the previous year. Insee has recommended analyzing salaries in ‘constant euros’ to accurately assess the real purchasing power of employees.
When using this adjusted metric, the situation appears bleaker: the average net salary has actually decreased by 0.8% in constant euros in 2023, indicating a continuing trend that began in the prior year. This decline is partially attributed to the reduction of ‘support bonuses for purchasing power’ that had previously provided some relief.
Binet’s observations align with Insee’s data, which illustrates that since 2020, salaries across both the private sector and most of the public sector have fallen, affecting workers at all levels, except for those in the hospital sector who benefited from special bonuses during the health crisis.
Interestingly, the lowest earners have fared somewhat better, largely due to the adjustments in the minimum wage, which have helped maintain their purchasing power in the face of inflation. According to Mathilde Gérardin from Insee, those at the bottom of the salary scale have seen their income shielded from the worst of the economic pressures.
However, Insee advises looking at a broader timeline to fully grasp the salary trends. Over a span of fifteen years, from the economic crisis in 2008 to 2023, the net salary in the private sector has seen an average increase of 4.7% in constant euros, while public service salaries have remained nearly unchanged. Even when considering the period from 1996 to 2023, salaries adjusted for inflation have risen by 13%, averaging an annual growth rate of 0.5%. Thus, the last few years appear to be an anomaly in an otherwise stable trajectory.
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