On changes of wages and salaries in 2nd quarter of 2010

31.08.2010

Average monthly gross wages and salaries in the country in 2nd quarter of 2010 comprised LVL 444, and it is LVL 13 or 2.9% more if compared to the 1st quarter, according to the data of the Central Statistical Bureau (CSB).

In public sector during this period wages and salaries grew by 6.4% (from LVL 446 to 474), but in private sector – by 0.6% (from LVL 421* to 423).

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*

2nd quarter of 2010

Changes of 2nd quarter of 2010 as % of 1st quarter of 2010

 

Changes of 2nd quarter of 2010 as % of 2nd quarter 2009

 

Total

470

474

456

440

432

444

2.9

-6.3

Private sector

441

435

431

424

421

423

0.6

-2.7

Public sector

519

536

497

463

446

474

6.4

-11.5

Of which:

 

 

 

 

 

 

 

 

General government sector

490

509

460

420

411

436

6.2

-14.3

The increase in public sector was caused by the irregular benefits paid in the state and local government businesses, as well as by the growth of the wage and salary level in local governments and institutions under their supervision.Rise of wages and salaries in local government sector, mainly, was caused by the growth of wages and salaries in education sector - by 11.0%, as well as in public administration - by 4.6%.

Compared to the 1st quarter, average gross wages and salaries in the 2nd quarter of this year in country totally witnessed the most notable rise in electricity, gas, steam and air conditioning supply – 10.9%, in education – 9.8%, in transport and storage – 5.1%, in water supply; sewerage, waste management, and remediation activities – 4.9%, as well as in human health and social work activities – 4.7%.

 

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

 

1st quarter of 2009

2nd quarter of 2009

3rd quarter of 2009

4th quarter of 2009

1st quarter of 2010*

2nd quarter 2010

Changes of 2nd quarter of 2010 as % of 1st quarter of 2010

 

Changes of 2nd quarter of 2010 as % of 2nd quarter of 2009

 

Total

470

474

456

440

432

444

2.9

-6.3

Agriculture, forestry and fishing

391

388

398

392

393

404

2.7

3.9

Mining and quarrying

488

487

514

524

503

501

-0.4

2.9

Manufacturing

407

410

408

396

390

402

3.1

-1.9

Electricity, gas, steam and air conditioning supply

578

619

655

608

578

641

10.9

3.5

Water supply; sewerage, waste management, and remediation activities

449

462

449

440

429

450

4.9

-2.5

Construction

456

437

430

439

426

405

-4.9

-7.3

Wholesale and retail trade, repair of motor vehicles and motorcycles

398

389

377

367

364

366

0.4

-6.1

Transport and storage

493

512

501

485

477

501

5.1

-2.1

Accommodation and food service activities

285

286

286

280

274

286

4.4

0.2

Information and communication

805

776

776

807

751

734

-2.3

-5.5

Financial and insurance activities

1036

954

944

932

920

949

3.1

-0.5

Real estate activities

369

379

374

373

362

368

1.8

-2.8

Professional, scientific and technical activities

575

574

558

570

564

572

1.3

-0.4

Administrative and support service activities

420

426

406

420

410

425

3.6

-0.2

Public administration and defence; compulsory social security

588

592

550

513

508

518

2.1

-12.5

Education

458

488

428

369

362

397

9.8

-18.5

Human health and sopcial work actrivities

449

467

429

410

402

421

4.7

-9.9

Arts, entertainment and recreation

396

394

377

373

367

368

0.2

-6.7

Other service activities

325

322

331

349

349

349

-0.2

8.4

 

Compared to the 2nd quarter of 2009, average gross wages and salaries in country in the 2nd quarter of this year decreased by 6.3% (from LVL 474 to 444).Net wages and salaries during this time period reduced more rapidly – by 11.0% (from LVL 355 to LVL 316), 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 2nd quarter of previous year, monthly average gross wages and salaries in public sector in the 2nd quarter of this year diminished by 11.5% (from LVL 536 to 474), of which in general government sector – by 14.3% (from LVL 509 to 436).In private sector they reduced by 2.7% (from LVL 435 to 423).

Number of employees, recalculated at full time units used to calculate monthly average wages and salaries, in the 2nd quarter of this year, if compared to the 1st quarter, has increased by 8.6 thousand or by 1.4%, but fund of wages and salaries - by LVL 34.9 million or by 4.3%.During the year number of employees has diminished by 99.2 thousand or by 13.6%, but fund of wages and salaries - by LVL 197.8 million or by 19.0%.

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.

 

* Data are revised.

Prepared by the Wage Statistics Section
Lija Luste
Tel.67366917