In the 3rd quarter of this year, average earnings constituted 925 euros

29.11.2017

Data of the Central Statistical Bureau (CSB) show that in the 3rd quarter of 2017 the average gross wages and salaries for full-time work comprised 925 euros. Compared to the 3rd quarter of 2016, the average earnings have increased by 65 euros or 7.5 %.

Compared to the previous quarter, in the 3rd quarter of 2017 gross wages and salaries fell by 0.2 % or two euros.

Compared to the 3rd quarter of 2016, in the 3rd quarter of 2017 gross wages and salaries fund rose by 8.3 % or 162.3 million euros, whereas the number of salaried workers (recalculated into full-time units) grew only by 0.7 % or 5.7 thousand.

Changes in average monthly wages and salaries by sector
(euros)

 

Q3 2016

Q1 2017

Q2 2017

Q3 2017

Changes, %

Q3 2017, compared to

Q3 2016

Q3 2017, compared to

Q2 2017

Total

860

879*

927

925

7.5

-0.2

private sector

848

872*

914*

913

7.7

-0.1

public sector**

885

897

954

954

7.8

0.0

general government sector

840

847

901

911

8.5

1.2

* Data are revised.
** Does not include foundations, associations, funds and their commercial companies.

In the 3rd quarter of 2017, the average net wages and salaries constituted 674 euros, which is 6.7 % more than in the 3rd quarter of 2016. In general, the average net wages and salaries rose slower than the earnings before taxes.

The increase in consumer prices registered in the 3rd quarter of 2017 (of 2.9 %, compared to the corresponding period of the previous year) had downward effect on the purchasing power of the employed population – the real wages and salaries grew only by 3.7 %.

Changes in consumer prices and average wages and salaries
(as per cent, compared to the corresponding period of the previous year)

 

Compared to the 3rd quarter of 2016, in the 3rd quarter of this year similar wage and salary rise was observed in both private and public sector – of 7.7 % and 7.8 %, respectively, whereas increase in general government sector was slightly higher – 8.5 %.

In the 3rd quarter of 2017, the average gross wages and salaries amounted to 913 euros in private sector and to 954 euros in public sector, whereas in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, it amounted to 911 euros.

Compared to the corresponding quarter of the previous year, in the 3rd quarter of 2017 the increase in wages and salaries was recorded in all sectors, except for electricity, gas, steam and air conditioning supply (drop of 4.3 %) and real estate activities (decline of 0.5 %).

The sharpest rise in the average wages and salaries was observed in professional, scientific and technical activities (that include legal and accounting activities, advertising and market research, architectural and engineering activities, management consultancy activities, scientific research and development, etc.) – of 10.1 % (with the sharpest increase in activities of head offices; management consultancy activities, advertising and market research as well as scientific research and development ), public administration and education – of 9.6 % in each, mining and quarrying – of 8.8 %, manufacturing – of 8.6 %, wholesale and retail trade – of 8.2 % (with the sharpest rise in wholesale), arts, entertainment and recreation – of 8.2 %, and administrative and support service activities – of 8.0 % (with the highest growth in office administrative, office support and other business support activities and security and investigation activities).

In all mentioned highest-level sectors of the classification of economic activities, except for wholesale and retail trade, the rapid increase in the average wages and salaries was influenced by the fast rise in the wage and salary fund. Whereas in wholesale and retail trade, wage and salary fund increased, but the number of full-time employees declined.

Compared to the corresponding period of the previous year, in the 3rd quarter of 2017 the drop in the average wages and salaries in electricity, gas, steam, and air conditioning supply was affected by the reduction in irregular premiums and bonuses (regular earnings grew by 4.4 %), while in real estate activities faster increase was registered in the number of full-time employees, as compared to the growth in the wages and salaries fund.

In the 3rd quarter of 2017, the highest wages and salaries for full-time work were registered in financial and insurance activities, information and communication and energy, energy, public administration and defence, mining and quarrying, as well as professional, scientific and technical activities. In other sectors, the average wages and salaries before taxes were below the national average.

The lowest wages and salaries, in turn, were observed in accommodation and food service activities, other service activities (that includes activities of public and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities), education, real estate activities, as well as arts, entertainment and recreation.

Average monthly gross wages and salaries in Q3 2016 and Q3 2017 and changes thereof

 

Compared to the 3rd quarter of 2016, in the 3rd quarter of 2017 regional breakdown shows the sharpest rise in the average monthly gross wages and salaries in Vidzeme, Latgale and Kurzeme regions – of 9.6 %, 9.1 % and 8.4 %, respectively. Annual rise in Riga that had the highest earnings in the 3rd quarter of this year (1041 euros) was the lowest among all regions – 7.1 %. The lowest average gross wages and salaries still were observed in Latgale region – 646 euros for full-time work, followed by Vidzeme with 747 euros, Kurzeme with 785 euros, Zemgale with 791 euros, whereas indicator registered in Pierīga region amounted to 866 euros.

 

Average monthly gross wages and salaries in Q3 2016 and Q3 2017 by region***

***Information on the average wages and salaries is broken down by region based on the address of the office or main activity of an enterprise or institution.

 

More information on wages and salaries in Latvia is available in the CSB website section Wages and Salaries – Key Indicators. Data on wages and salaries are published in the database section Wages and Salaries (Short term statistical data and Annual statistical data).

Methodological explanations

Data on the beginning of the year are revised each quarter in line with the routine data revisions defined in the CSB Revision Policy guidelines, as new economically active enterprises and institutions are added to the population of the statistical units surveyed, kinds and sectors of economic activities of enterprises are specified, additional or specified information from respondents or updated data from administrative data sources are received.

The data source used for wage and salary statistics is the sample survey of individual merchants, commercial companies, state and local government institutions, foundations, associations and funds, as well as administrative data sources.

The CSB calculations of average wages in public sector include central and local government institutions and their commercial companies, companies with central or local government capital participation of 50 % and over, excluding foundations, associations, funds, and their commercial companies.

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

The changes in the average monthly wages and salaries are calculated as not-rounded values, i.e., taking into account the value in euro cents.

When calculating the 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 different workloads ensuring comparability of indicators.

 

 

 

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More information on data:
Lija Luste
Wage Statistics Section
E-mail: Lija [dot] Luste [at] csb [dot] gov [dot] lv
Phone: +371 67366917