On changes of wages and salaries in 1st quarter of 2010

31.05.2010

According to the data of the Central Statistical Bureau (CSB), average monthly gross wages and salaries in the country in 1st quarter of 2010 comprised LVL 431. And it is LVL 9 or 2.0% less compared to the 4th quarter of 2009.

In public sector during this period wages and salaries reduced by 3.8% (from LVL 463 to 446), but in private sector – by 1.0% (from LVL 424 to 420).

Compared to the 1st quarter of 2009, average gross wages and salaries in country in the 1st quarter of this year decreased by 8.3% (from LVL 470 to 431). Net wages and salaries during this time period reduced more rapidly – by 12.6% (from LVL 352 to LVL 307), and it may be explained with the fact that starting from January 1, 2010 population income tax rate grew from 23% to 26%, as well as on July 1, 2009 amount of monthly basic allowance reduced from LVL 90 to LVL 35.

Compared to the 1st quarter of previous year, monthly average gross wages and salaries in public sector in the 1st quarter of this year diminished by 14.1% (from LVL 519 to LVL 446), of which in general government sector – by 16.3% (from LVL 490 to LVL 410). In private sector they reduced by 4.7% (from LVL 441 to LVL 420).

Average monthly gross wages and salaries by sectors (LVL)

 

1st quarter of 2009

2nd quarter of 2009

3rd quarter of 2009

4th quarter of 2009

1st quarter of 2010

Changes of 1st quarter 2010 as % of 4tht quarter 2009

Changes of 1st quarter 2010 as % of 1st quarter 2009

Total

470

474

456

440

431

-2.0

-8.3

Private sector

441

435

431

424

420

-1.0

-4.7

Public sector

519

536

497

463

446

-3.8

-14.1

Of which:

       

General government sector

490

509

460

420

410

-2.3

-16.3

 

Number of employees, recalculated at full time units used to calculate monthly average wages and salaries, in the 1st quarter of this year, if compared to the 1st quarter of 2009, has reduced by 145.3 thsd or by 18.9%, but fund of wages and salaries - by LVL 278.2 mln or by 25.6%.

Compared to the corresponding period of previous year, monthly average gross wages and salaries in the country in the 1st quarter of this year witnessed the most significant decrease following sectors: education - 21,0%, public administration and defence; compulsory social security – 13.7%, financial and insurance activities – 11.2%, human health and social work activities – 10.7%, trade – 8.7%, construction – 8.0%.

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

 

1st quarter* 2009

2nd quarter of 2009

3rd quarter of 2009

4th quarter of 2009

1st quarter of 2010

Changes of 1st quarter 2010 as % of 4th quarter 2009

Changes of 1st quarter 2010 as % of 1st quarter 2009

Total

470

474

456

440

431

-2.0

-8.3

Agriculture, forestry and fishing

391

388

398

392

395

0.7

1.1

Mining and quarrying

488

487

514

524

502

-4.2

2.8

Manufacturing

407

410

408

396

389

-1.7

-4.3

Electricity, gas, steam and air conditioning supply

578

619

655

608

577

-5.0

-0.2

Water supply; sewerage, waste management, and remediation activities

449

462

449

440

428

-2.9

-4.8

Construction

456

437

430

439

419

-4.4

-8.0

Wholesale and retail trade, repair of motor vehicles and motorcycles

398

389

377

367

363

-0.9

-8.7

Transport and storage

493

512

501

485

475

-2.1

-3.8

Accommodation and food service activities

285

286

286

280

275

-1.8

-3.3

Information and communication

805

776

776

807

757

-6.2

-6.0

Financial and insurance activities

1036

954

944

932

920

-1.2

-11.2

Real estate activities

369

379

374

373

362

-3.0

-1.9

Professional, scientific and technical activities

575

574

558

570

566

-0.7

-1.7

Administrative and support service activities

420

426

406

420

408

-3.0

-2.9

Public administration and defence; compulsory social security

588

592

550

513

508

-1.1

-13.7

Education*

458

488

428

369

362

-1.9

-21.0

Human health and social work activities

449

467

429

410

401

-2.3

-10.7

Arts, entertainment and recreation*

396

394

377

373

369

-1.3

-7.0

Other service activities

325

322

331

349

331

0.4

7.8

 

Data on Baltic States show that, compared to the corresponding period of previous year, monthly average gross wages and salaries in the 1st quarter of this year witnessed the most notable reduction in Latvia – 8.3% (from EUR 669 to EUR 613). In Lithuania they diminished by 7.4% (from EUR 635 to EUR 588), but in Estonia – by 2.3% (from EUR 776 to EUR 758).

More information on wages and salaries in Latvia is available in CSB data base.

 

Prepared by the Wage Statistics Section
Ervins Rekke
Tel. 67366666

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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.

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

* Data are revised.