Jobs
Profits are rising faster than wages
| 2019 | 384 | 272 |
|---|---|---|
| 2020 | 398 | 241 |
| 2021 | 415 | 316 |
| 2022 | 444 | 375 |
| 2023 | 478 | 358 |
Real disposable income of households up by 5.4 percent
Remuneration of employees increased on the one hand because more jobs were added and on the other because of higher wages. Strong economic growth in 2021 and 2022 and tightness on the labour market were the main reasons for this.
The remuneration of employees, combined with other types of income, such as pensions, social benefits, income from self-employment, and income from assets add up to the total disposable income of households. Adjusted for price increases, disposable income increased by 5.4 percent between 2019 and 2023.
During this period the population also grew, in particular due to (labour) migration. In 2023 the average disposable income per capita was 2.2 percent higher than in 2019. That average does not apply to everyone, and there can be large differences between population groups. The figures available on income groups show that households on lower incomes have benefited more than households on higher incomes.
| 2019 | 100.0 |
|---|---|
| 2020 | 101.7 |
| 2021 | 103.3 |
| 2022 | 103.9 |
| 2023 | 105.4 |
Profit ratio reaches record levels
The economic growth of recent years caused profits of non-financial corporations to soar. These high profits were achieved partly due to various grants that were part of the financial support measures during the coronavirus pandemic. Higher profits do not automatically mean that businesses have increased their profitability, as profits can also be generated by increasing production. The profit ratio is a commonly used measure of profitability. This is operating profit as a share of value added. In 2022, the profit ratio was 44.3 percent, which was the highest level since 1995, the first year for which this figure is known. In 2023, the profit ratio declined slightly despite limited economic growth. The profit ratio remained at historically high levels.