French hourly wages rose 0.2% QoQ and 2.0% YoY in Q2 2025, while hourly labor costs increased at the same pace, reflecting continued but slowing growth compared with earlier quarters.

• Wage growth slowed from +2.6% YoY in Q1 to +2.0% in Q2, consistent with easing inflation feeding into wage negotiations.

• The Q2 flash estimate for wages was confirmed at +2.0% YoY, while labor costs were revised down -0.1 ppt; Q1 figures for both wages and costs were revised up +0.1 ppt due to updated reporting.

• Industry wages declined -0.1% QoQ but were up 2.2% YoY, softening from +2.8% in Q1, while services wages rose 0.1% QoQ and 1.8% YoY (vs +2.6% previously).

• Construction wages increased 0.9% QoQ and 2.3% YoY, a slight acceleration from +2.2% in Q1, contrasting with weakness in other sectors.

• Hourly labor costs mirrored wages, with industry at +2.2% YoY (vs +3.0% prior), services at +1.9% YoY (vs +2.7%), and construction slightly stronger at +2.6% YoY (vs +2.4%).

• Within services, earnings growth was strongest in information & communication (+3.3% YoY) and financial & insurance activities (+3.3% YoY), but weaker in wholesale/retail (+1.4% YoY) and administrative/support services (+1.0% YoY).

• The consumer price index slowed to +0.8% YoY in Q2 (vs +1.1% prior), helping explain the moderation in nominal wage growth.