Average monthly wage in CR up 2.2 pct to Kc22,748 in Q1

Real, inflation adjusted, wage rose by 1.5 percent.

According to the statisticians, the development of wages was influenced by a decrease in the number of employees, which went down by 176,000 year-on-year in Q1.

The development of real wages was affected by a low inflation growth, the CSU said.

Compared with the previous quarter, the average wage in the entire national economy grew by 0.7 percent, seasonally adjusted.

The average nominal wage in the business sector increased by 2 percent, of Kc440, to Kc22,693. Real wage grew by 1.3 percent.

The average nominal wage in the non-business sector, including state administration, rose by 3 percent, or Kc669, to Kc22,982, and real wage by 2.3 percent.

The average nominal wage dropped namely in professional, scientific and technical activities, financial and insurance activities and in information and communication.

In contrast, the biggest growth of nominal wage was recorded in human health and social work activities, arts, entertainment and recreation and mining and quarrying.

Thedecrease in the number of employees in the business sector was partially offset by an increase in employee numbers in the non-business sector by about 8,000 people.

The highest nominal wage in financial and insurance activities was about 4.4 times higher than the lowest nominal wage in accommodation and food service activities.

Analysts say pressure on wages to increase to be very moderate

Analysts polled by CTK said pressure on wages to increase will be very moderate this and next year as firms will not have any reason to raise them due to low inflation and high unemployment.

On top, the overall economic recovery will be very gradual, economists said.

The average Czech monthly wage grew by Kc484 or 2.2 percent on the year to Kc22,748 in Q1 this year, posting thus the lowest growth since 2000. Real, inflation adjusted, wage rose by 1.5 percent.

According to statisticians, the development of wages was influenced by a decrease in the number of employees, which went down by 176,000 year-on-year in Q1.

Two-thirds of employees still do not reach the average monthly wage, analysts added.

"A higher wage increase cannot be reckoned with in the following quarters, either. The economic recovery will be gradual and consumer price increase will be slow. Firms will continue to be cautious about raising wages as the recovery of the economy will be fragile. The situation on the labour market, where there are more jobs now compared with the previous years, will not force them (to raise wages), either," Citfin analyst Jiri Simek said.

Author: ČTK
www.ctk.cz