On changes of wages and salaries in the 2nd quarter of 2009

31.08.2009



Average monthly gross wages and salaries in the country in 2nd quarter of 2009 comprised LVL 473, according to the data of Central Statistical Bureau. Compared to the 1st quarter of 2009, it was more by 0.7%, but, if compared to the 2nd quarter of previous year, it decreased by 1.0%.

If compared to the 2nd quarter of 2008, monthly gross wages and salaries in private sector increased by 0.1% (from LVL 435 to LVL 436), but in public sector it reduced by 6.2% (from LVL 567 to LVL 532).

Average monthly gross wages and salaries be sectors (LVL)

1st quarter of 2008

2nd quarter of 2008

1st quarter of 2009

2nd quarter of 2009

Changes of 2nd quarter 2009 as % of 1st quarter 2009

Changes of 2nd quarter 2009 as % of 2nd quarter 2008

Total

453

477

469

473

0,7

-1,0

Private sector

422

435

444

436

-1.8

0.1

Public sector

520

567

512

532

3.9

-6.2

of which in state budgetary institutions

602

668

556

566

1.8

-15.3

Due to economic crisis merchants and institutions are firing employees, in the result of which both the number of employees, as well as fund of wages and salaries is reducing rapidly which, however, does not significantly influence changes of average wages and salaries. More rapid drop of gross monthly wages and salaries is observed in state budgetary institutions where wages and salaries are cut for all employees.

Compared to the second quarter of previous year the number of employees recalculated in full-time units, which are used for the calculations of average monthly wages and salaries, in the second quarter of this year reduced by 182.5 thsd or by 20.0%. Fund of wages and salaries during this period diminished by LVL 271.4 mln or by 20.8%, but compared to the first quarter of this year – by LVL 46.4 mln or by 4.3%.

Calculated gross wages and salaries and the number of employees by sectors

1st quarter of 2008

2nd quarter of 2008

1st quarter of 2009

2nd quarter of 2009

Changes of 2nd quarter 2009 as % of 1st quarter 2009

Changes of 2nd quarter 2009 as % of 2nd quarter 2008

Private sector

Fund of gross wages and salaries,
mln LVL

770.3

802.7

633.8

583.2

-8.0

-27.3

Average number of employees in full-time units, thsd

608.2

614.6

475.9

446.1

-6.3

-27.4

Public sector

Fund of gross wages and salaries,
mln LVL

449.9

496.4

439.4

443.4

0.9

-10.7

Average number of employees in full-time units, thsd

288.7

292.0

286.0

277.9

-2.9

-4.8



Compared to the 1st quarter, in the 2nd quarter this year growth of both average monthly gross wages and salaries, as well as of fund of wages and salaries in public sector can partially be explained by compensations paid to redundant employees for unused vacation, of which to those working pensioners who discontinued their labour relations in June (as of July 1 working pensioners receive only 30% of calculated pension).

Changes of average monthly gross wages and salaries according to new classification of economic activities are the following:



Average monthly gross wages and salaries and the number of employees by kind of economic activity(according to NACE Rev. 2 classification)

Average monthly gross wages and salaries (LVL)

Average number of employees in full-time units, thsd

2nd quarter of 2008

2nd quarter of 2009

Changes of 2nd quarter 2009 as % of 2nd quarter 2008

2nd quarter of 2008

2nd quarter of 2009

Changes of 2nd quarter 2009 as % of 2nd quarter 2008

Total

477

473

-1.0

911.9

729.3

-20.0

Agriculture, forestry and fishing

411

389

-5.3

19.3

16.4

-15.1

Mining and quarrying

516

476

-7.6

2.8

2.6

-5.1

Manufacturing

414

411

-0.9

131.7

91.2

-30.7

Electricity, gas, steam and air conditioning supply

630

619

-1.8

14.3

13.3

-7.0

Water supply; sewerage, waste management, and remediation activities

470

461

-2.0

8.2

7.0

-14.1

Construction

445

438

-1.6

81.8

45.3

-44.7

Wholesale and retail trade, repair of motor vehicles and motorcycles

400

384

-3.9

172.5

132.6

-23.1

Transport and storage

496

515

3.7

71.4

60.1

-15.8

Accommodation and food service activities

296

286

-3.6

28.9

19.8

-31.5

Information and communication

749

784

4.7

19.1

16.4

-14.3

Financial and insurance activities

987

957

-3.0

22.2

19.6

-11.6

Real estate activities

385

377

-2.1

27.3

22.9

-16.1

Professional, scientific and technical activities

564

572

1.3

31.2

24.2

-22.3

Administrative and support service activities

438

418

-4.5

28.1

22.3

-20.4

Public administration and defence; compulsory social security

708

592

-16.4

69.4

65.8

-5.3

Education

461

488

5.6

94.4

90.9

-3.7

Health and social care

491

468

-4.8

51.6

49.1

-4.8

Art, entertainment and recreation

431

393

-8.8

24.9

20.8

-16.3



Examining data on the Baltic States in the second quarter of 2009, compared to the same period of previous year, it must be noted that average monthly wages and salaries decreased in all countries: in Estonia – by 4.4% (from EUR 850 to EUR 813), in Lithuania – by 2.9% (from EUR 648 to EUR 629), in Latvia – by 1.0% (from EUR 679 to EUR 673).

More information on wages and salaries in Latvia can be found in the data bases of the CSB.

___________________

Explanations

Public sector is central and local government commercial companies, as well as companies with central or local government capital participation 50% and over, foundations, associations and funds, and their commercial companies. Data on foundations, associations and funds and their commercial activities are not included in information.

Severance pay, in accordance with methodology, is not included in the wages and salaries – it is included in other labour force costs.

Prepared by the Wage Statistics Section
Ervins Rekke
Tel. 67366666