3rd quarter indicates higher rise in wages and salaries

02.12.2013

Latest data compiled by the Central Statistical Bureau of Latvia show that, as compared to the corresponding periods of the previous year, average wages and salaries in the 3rd quarter of 2013 have risen faster than in the first two quarters of 2013.

In the 3rd quarter of this year, average gross wages and salaries in the country comprised LVL 508 (EUR 722); in comparison with the 3rd quarter of the last year, they have increased by 5.1%, whereas annual growth in the 1st and 2nd quarter accounts for 3.8%* and 4.8%*, respectively.

Compared to the 2nd quarter of 2013, gross wages and salaries have gone up by 0.7% – from LVL 504 to LVL 508 (from EUR 717 to EUR 722).Rise in the public sector constituted 1.0%, in private sector – 0.7%, while in general government sector – 1.7%.

Changes in average monthly gross wages and salaries
(per cent over corresponding period of previous year)

Data source: Central statistical Bureau of Latvia

Compared to the 3rd quarter of 2012, gross wages and salaries in public sector in the 3rd quarter of 2013 have increased slightly faster than in private sector – by 5.3% (from LVL 518 to LVL 546 or from EUR 737 to EUR 777). Rise in private sector comprised 5.0% (from LVL 464 to LVL 487 or from EUR 660 to EUR 694), while in general government sector – 6.2% (from LVL 470 to LVL 499 or from EUR 669 to EUR 710).

Changes in average monthly wages and salaries by sector

 

currency

Q3 2012

Q1 2013

Q2 2013

Q3 2013

Changes, %

Q3 2013 over

Q3 2012

Q3 2013 over

Q2 2013

Total

LVL

483

484*

504*

508

5.1

0.7

EUR**

687

689

717

722

Private sector

LVL

464

470*

484*

487

5.0

0.7

EUR

660

668

689

694

Public sector

LVL

518

510

540

546

5.3

1.0

EUR

737

725

769

777

of which:

 

 

 

 

 

 

 

General government sector

LVL

470

469

490*

499

6.2

1.7

EUR

669

668

698

710

 

Average monthly gross wages and salaries by sector (LVL)

Data source: Central statistical Bureau of Latvia

In the 3rd quarter of 2013, average monthly gross wages and salaries, calculated by including also unemployed persons engaged in paid temporary public works in the wage earner number, constituted LVL 504 (EUR 717). Data of the State Employment Agency show that, in the 3rd quarter, on average 8.5 thousand unemployed persons were participating in the paid temporary public works.

Average monthly net wages and salaries in the 3rd quarter of this year constituted LVL 366 (EUR 521). During the year, as consumer price level dropped by 0.1%, the real growth has reached 6.3%.

Changes in average monthly net wages and salaries

(per cent over corresponding period of previous year)

Data source: Central statistical Bureau of Latvia

In comparison with the 3rd quarter of 2012, increase in the wages and salaries in the 3rd quarter of 2013 was recorded in all sectors, except water supply; sewerage, waste management, and remediation activities that indicated a decline of 0.8%.

Average monthly gross wages and salaries by main kind of economic activity

Data source: Central statistical Bureau of Latvia

The most notable rise in wages and salaries was recorded in mining and quarrying (of 17.2%); as compared to the 3rd quarter of 2012, in this sector number of employees recalculated at full-time units diminished, while wage and salary fund grew rapidly. The most significant changes were observed also in arts, entertainment and recreation – of 12.7%; the sector was mainly affected by the rise in wages and salaries earned in gambling and betting activities, public administration – of 8.7%, financial and insurance activities – of 7.8%, and trade – of 7.0%, where higher increase in wages and salaries was recorded in wholesale and retail trade and repair of motor vehicles and motorcycles as well as wholesale of other goodsas well asin construction – of 6.2%.

Wages and salaries in public administration have risen more rapidly because of both regular wages and irregular premiums (irregular bonuses include also compensations for unused holidays, holiday allowance), while in financial and insurance activities sector along with the increase in regular wages and irregular premiums the number of employees reduced.

Average monthly gross wages and salaries by main kind of economic activity

 

Q3 2012

Q2 2013*

Q3 2013

Changes, %

LVL

EUR

LVL

EUR

LVL

EUR

Q3 2013 over

Q3 2012

Q3 2013 over

Q2 2013

Total

483

687

504

717

508

722

5.1

0.7

Agriculture, forestry and fishing

465

662

472

671

481

684

3.4

1.9

Mining and quarrying

518

737

554

788

607

863

17.2

9.5

Manufacturing

452

644

463

659

470

669

3.9

1.6

Electricity, gas, steam and air conditioning supply

754

1073

724

1030

778

1107

3.2

7.5

Water supply; sewerage, waste management, and remediation activities

498

709

515

732

494

703

-0.8

-4.0

Construction

453

645

472

672

482

685

6.2

2.0

Wholesale and retail trade, repair of motor vehicles and motorcycles

409

583

435

620

438

623

7.0

0.6

Transport and storage

538

765

558

794

556

791

3.3

-0.5

Accommodation and food service activities

315

448

326

464

325

462

3.1

-0.5

Information and communication

781

1112

801

1139

804

1144

2.9

0.4

Financial and insurance activities

988

1406

1099

1563

1065

1515

7.8

-3.1

Real estate activities

421

599

428

610

432

615

2.6

0.9

Professional, scientific and technical activities

589

838

605

861

593

843

0.7

-2.1

Administrative and support service activities

429

611

452

643

454

646

5.8

0.4

Public administration and defence; compulsory social security

579

823

624

888

629

895

8.7

0.8

Education

411

584

419

596

431

613

4.9

2.9

Health and social work

453

644

473

674

471

670

4.0

-0.6

Arts, entertainment and recreation

399

568

450

640

450

640

12.7

0.0

Other service activities

406

578

421

599

421

600

3.8

0.1

As compared to other Baltic States, increase in average gross wages and salaries in Latvia was the lowest – 5.1% (from EUR 687 to EUR 722). The highest increase was recorded in Estonia – of 8.8% (from EUR 855 to EUR 930), while in Lithuania growth accounted for 6.2% (from EUR 629 to EUR 668).

Latvia, in turn, indicates the fastest growth of purchasing power of salaried workers. In comparison with the 3rd quarter of 2012, real wage and salary increase in Latvia (considering changes in consumer prices) in the 3rd quarter of 2013 comprised 6.3%, in Estonia – 5.8%, and in Lithuania – 5.4%.

More information on wages and salaries in Latviais available in the CSB database.

___________________

Explanations

Data source: sample survey of individual merchants, commercial companies, State and local government institutions, foundations, associations and funds as well as administrative data sources.

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

According to the European System of Accounts (ESA 95) the general government sector includes central and local government institutions, the social security fund, enterprises controlled and financed by the central and local governments.

Changes in average monthly wages and salaries are calculated as rounded values, i.e., considering the value in santims/eurocents.

When calculating average monthly wages and salaries the number of salaried employees is re-calculated into full-time units, thus eliminating the differences in salaries paid for various workloads.

* Data are revised.

** Data were recalculated into euro in line with fixed exchange rate 1 EUR = 0.702804 LVL.

 

More information:
Lija Luste
Wage Statistics Section
Tel. +371 67366917