On changes of wages and salaries in 1st quarter of 2012

01.06.2012

Data of the Central Statistical Bureau (CSB) show that wages and salaries, retaining the trend of the previous year, also at the beginning of this year have increased, nevertheless growth rate, if compared to the previous year, has reduced (in 2011 wages and salaries on average grew by 4.4%).
In the 1st quarter of 2012 the average monthly gross wages and salaries in the country comprised by LVL 467, and, in comparison with the corresponding period of the previous year, wages and salaries have grown by LVL 17 or 3.7%. In public sector wages and salaries during a year have increased by 3.1% (from LVL 474 to LVL 488), of which in general government sector by 1.9% (from LVL 441 to LVL 449), whereas in private sector the rise was more rapid - 4.2% (from LVL 435 to LVL 453).
Compared to the 4th quarter of 2011, the average gross wages and salaries in the country in the 1st quarter of this year have decreased by LVL 9 or 1.8%. In public sector reduction comprised 3.6% (from LVL 507 to LVL 488), of which in general government sector – 3.0% (from LVL 463 to LVL 449) and in private sector – 0.8% (from LVL 457 to LVL 453).

Average monthly gross wages and salaries by sector (LVL)

In comparison with the corresponding period of the previous year, the most notable rise of average monthly gross wages and salaries in the 1st quarter of 2012 was recorded in financial and insurance activities – of 7.6%, in transport and storage – of 6.3%, in trade – of 5.5%, in accommodation and food service activities – of 5.2%, as well as in information and communication – of 4.9%.
Rise in financial and insurance activities was noticeably influenced by increase of irregular payments, while regular wages and salaries during this period grew by 4.7%. Also in accommodation and food service activities sector  regular wages and salaries increased slower – by 4.1%, while information and communication sector witnessed reduction of 2.1%.
Average monthly gross wages and salaries in manufacturing have increased by 4.4%, while in construction – by 4.0%.
Whereas reduction of wages and salaries during this period was observed in real estate activities – of 2.3%, as well as in education – of 0.4%.

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

 

1st qtr 2011

2nd qtr 2011

3rd qtr 2011

4th qtr 2011

1st qtr 2012

Changes, %

1st qtr 2012 over

1st qtr 2011

1st qtr 2012 over

4th qtr 2011

Total

450

463

467

475

467

3.7

-1.8

Agriculture, forestry and fishing

423

438

462

470

429

1.4

-8.8

Mining and quarrying

510

523

504

537

518

1.5

-3.6

Manufacturing

409

422

432

440

427

4.4

-3.1

Electricity, gas, steam and air conditioning supply

622

672

741

642

627

0.8

-2.3

Water supply; sewerage, waste management, and remediation activities

456

491

479

498

474

3.8

-5.0

Construction

420

428

446

449

436

4.0

-2.9

Wholesale and retail trade, repair of motor vehicles and motorcycles

379

390

394

401

400

5.5

-0.2

Transport and storage

481

509

501

524

511

6.3

-2.6

Accommodation and food service activities

296

299

307

298

312

5.2

4.6

Information and communication

768

758

787

804

805

4.9

0.1

Financial and insurance activities

953

964

960

989

1025

7.6

3.6

Real estate activities

397

397

400

404

388

-2.3

-3.8

Professional, scientific and technical activities

576

599

593

594

600

4.1

1.1

Administrative and support service activities

418

425

432

441

422

1.0

-4.3

Public administration and defence; compulsory social security

530

539

544

573

548

3.3

-4.5

Education

394

410

399

400

393

-0.4

-1.6

Health and social work

421

447

442

448

433

2.7

-3.4

Arts, entertainment and recreation

377

397

386

392

384

1.9

-1.9

Other service activities

376

372

386

399

393

4.7

-1.5

Compared to the 1st quarter of 2011, the highest rise of wages and salaries in the 1st quarter of 2012, if to compare all three Baltic States, was recorded in Estonia – of 6.9% (from EUR 792 to EUR 847), in Latvia increase constituted 3.7% (from EUR 640 to EUR 664), whereas in Lithuania - 3.2% (from EUR 600 to EUR 619).
In comparison with the neighbouring countries, where labour force taxes are lower, in the 1st quarter of this year, ratio of the net wages and salaries to the gross wages and salaries in Latvia is the lowest – 71% (net wages – EUR 473). The highest indicator was observed in Estonia - 80% (EUR 677), and in Lithuania it comprised 78% (EUR 481).

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

___________________
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. The information does not include the data on foundations, associations and funds and their commercial companies.

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.

The changes of average monthly wages and salaries are calculated as rounded values, i.e., considering the value in santims.

 

Prepared by the Wage Statistics Section
Lija Luste
Tel. 67366917