On changes of wages and salaries in 2009 and 4th quarter of 2009

02.03.2010

According to the data of the Central Statistical Bureau (CSB), average monthly gross wages and salaries in the country in 4th quarter of 2009 comprised LVL 440. And it is LVL 16 or 3.5% less compared to the 3rd quarter of 2009.

In public sector during this period wages and salaries reduced by 6.7% (from LVL 497 to 463), but in private sector – by 1.5% (from LVL 431 to 424).

Compared to 4th quarter of 2008, average gross wages and salaries in country in 4th quarter of 2009 decreased by 12.1% (from LVL 500 to 440). As a result of the wage and salary optimization and abolition of bonuses and holiday allowances in state and local government institutions monthly average gross wages and salaries during this period in public sector diminished by 23.7% (from LVL 607 to 463), of which in general government sector – by 28.4% (from LVL 586 to 420). In private sector they reduced by 5.0% (from LVL 447 to 424).

Compared to 2008, monthly average gross wages and salaries in country in 2009 decreased from LVL 479 to 461 or by 3.9%. In public sector reduction comprised 10.9% (from LVL 567 to 505), of which in general government sector – 13.7% (from LVL 546 to 471), in private sector – 1.0% (from LVL 438 to 433).

Average monthly gross wages and salaries by sectors (LVL)

2008

4th quarter 2008

2009

1st quarter* 2009

2nd quarter* 2009

3rd quarter* 2009

4th quarter 2009

Changes of 2009 as % of 2008

Changes of 4th quarter 2009 as % of 4th quarter 2008

Total

479

500

461

470

474

456

440

-3.9

-12.1

Private sector

438

447

433

441

435

431

424

-1.0

-5.0

Public sector

567

607

505

519

536

497

463

-10.9

-23.7

Of which:

General government sector

546

586

471

489

509

460

420

-13.7

-28.4

Number of employees, recalculated at full time units used to calculate monthly average wages and salaries, in 2009 compared to 2008 has reduced by 193.3 thsd or by 21.4%, but fund of wages and salaries - by LVL 1 270.3 mln or by 24.5%.

Compared to the corresponding period of 2008, the most notable reduction of monthly average gross wages and salaries in the 4th quarter of 2009 was recorded in such sectors as education – 34.9%, public administration and defence; compulsory social security – 25.6%, human health and social work activities – 18.3%, arts, entertainment and recreation – by 17.8%, as well as water supply; sewerage, waste management, and remediation activities – 13.8%.

Compared to 2008, the most rapid reduction of average monthly gross wages and salaries in 2009 was observed in public administration and defence; compulsory social security – 17.8%, arts, entertainment and recreation – 11.8%, human health and social work activities – 9.7%, as well as in education – 9.4%.

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

2008

4th quarter 2008

2009

1st quarter* 2009

2nd quarter*
2009

3rd quarter* 2009

4th quarter 2009

Changes of 2009 as % of 2008

Changes of 4th quarter 2009 as % of 4th quarter 2008

Total

479

500

461

470

474

456

440

-3.9

-12.1

Agriculture, forestry and fishing

412

411

392

391

388

398

392

-4.7

-4.5

Mining and quarrying

516

544

503

488

487

514

524

-2.5

-3.8

Manufacturing

413

423

405

407

410

408

396

-2.0

-6.3

Electricity, gas, steam and air conditioning supply

646

657

614

578

619

655

608

-5.0

-7.5

Water supply; sewerage, waste management, and remediation activities

470

511

450

449

462

449

440

-4.2

-13.8

Construction

446

458

441

456

437

430

439

-1.0

-4.3

Wholesale and retail trade, repair of motor vehicles and motorcycles

396

401

384

398

389

377

367

-3.2

-8.6

Transport and storage

497

526

498

493

512

501

485

0.2

-7.8

Accommodation and food service activities

293

288

284

285

286

286

280

-2.8

-2.7

Information and communication

779

808

791

805

776

776

807

1.6

-0.2

Financial and insurance activities

1032

1043

968

1036

954

944

932

-6.2

-10.7

Real estate activities

384

396

374

369

379

374

373

-2.7

-5.7

Professional, scientific and technical activities

565

582

570

575

574

558

570

0.9

-2.1

Administrative and support service activities

430

450

418

420

426

406

420

-2.7

-6.6

Public administration and defence; compulsory social security

683

686

561

588

592

549

510

-17.8

-25.6

Education

485

569

439

459

489

429

370

-9.4

-34.9

Human health and social work activities

487

502

440

449

467

429

410

-9.7

-18.3

Arts, entertainment and recreation

437

451

385

396

395

375

371

-11.8

-17.8

Data on Baltic States show that, compared to corresponding period of 2008, the most significant reduction of monthly average gross wages and salaries in 4th quarter of 2009 was recorded in Latvia – 12.1% (from EUR 712 to 626), Lithuania – 8.7% (from EUR 672 to 614), Estonia – 6.5% (from EUR 838 to 783).

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

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

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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.

Absolute changes and changes in per cent are calculated from not rounded up data (wages and salaries with santims) or data not converted into thousands or millions.

* Data are revised (inclusion of new economically active merchants in population and specification of main kind of activity of merchants).

Prepared by the Wage Statistics Section
Ervins Rekke
Tel. 67366666