On changes of wages and salaries in the 4th quarter of 2008 and in 2008

02.03.2009

Provisional information compiled by the Central Statistical Bureau (CSB) show that, in the 4th quarter of 2008, compared to the 3rd quarter of 2008, average monthly gross wages and salaries in the country grew by 2.4%. In public sector 1) it increased by 5.9% (from 573 to 607 lats), but in private sector – decreased by 0.5% (from 448 to 446 lats).

Considering the consumer price growth that constituted 1.4%, the real increase of the wages and salaries comprised 1.3%.

Average monthly gross wages and salaries by sectors (in lats)

2007

4th quarter of 2007

2008

1st quarter of 2008 2)

2nd quarter of 2008 2)

3rd quarter of 2008 2)

4th quarter of 2008

Total

398

446

480

454

478

488

500

Public sector

477

564

567

520

567

573

607

Private sector

362

392

438

424

436

448

446

Compared to the third quarter of 2008, in the fourth quarter of 2008 the largest increase was in education – by 19.1%, in mining and quarrying – by 5.6%, in public, social and personal services – by 4.8% and in financial intermediation – by 4.4%. In several sectors wages and salaries decreased during this period, for example, in electricity, gas and water supply – they dropped by 6.2%, in hotels and restaurants – by 5.0%, in public administration – by 2.3%.

In the 4th quarter of 2008, compared to the 4th quarter of 2007, wages and salaries increased from 446 to 500 lats or by 12.0%. In public sector the increase comprised 7.6% (from 564 to 607 lats), but in private sector – 13.8% (from 392 to 446 lats).

Average net monthly wage in this period increased by 14.1% and reached 366 lats. Considering the consumer price growth that constituted 12.0%, the real increase of the wages and salaries comprised 1.9%.

Changes of average gross monthly wages and salaries in public and private sector over the corresponding period of previous year (per cent)

In the fourth quarter of 2008, compared to the fourth quarter of 2007, gross wages and salaries increased most rapidly in the following sectors: transport, storage and communication – from 455 to 547 lats or by 20.3%, real estate, renting and business activities – from 453 to 528 lats or by 16.6%, fishing – from 286 to 326 lats or by 13.9%, in health and social work – from 443 to 501 lat or by 13.0% and manufacturing – from 379 to 429 lats or by 13.0%. In its turn, in public administration average monthly wages and salaries slightly decreased - from 676 to 672 lats or by 0.6%.

Average monthly gross wages and salaries by kind of activity (in lats)

4th quarter of 2007

3rd quarter of 2008 2)

4th quarter of 2008

Changes of 4th quarter of 2008 as percent of 3rd quarter of 2008

Changes of 4th quarter of 2008 as percent of 4th quarter of 2007

Total

446

488

500

2.4

12.0

Agriculture, hunting and forestry

389

427

410

-4.0

5.3

Fishery

286

340

326

-4.2

13.9

Mining and quarrying

497

515

544

5.6

9.6

Manufacturing

379

434

429

-1.1

13.0

Electricity, gas and water supply

658

764

716

-6.2

8.9

Construction

416

461

452

-1.9

8.7

Wholesale, retail trade; repair of motor vehicles, motorcycles, personal, household goods

355

403

400

-0.7

12.6

Hotels and restaurants

257

303

288

-5.0

12.2

Transport, storage and communication

455

525

547

4.2

20.3

Financial intermediation

919

951

993

4.4

8.1

Real estate, renting and business activities

453

517

528

2.2

16.6

Public administration and defence; compulsory social security

676

688

672

-2.3

-0.6

Education

511

479

571

19.1

11.6

Health and social work

443

494

501

1.5

13.0

Public, social and personal service

408

434

455

4.8

11.7

In 2008, compared to 2007, average monthly wages and salaries increased from 398 to 480 lats or by 20.7%. More rapidly wages and salaries increased in private sector – by 21.2% (from 362 to 438 lats), in public sector the growth comprised 18.9% (from 477 to 567 lats).

In 2008, compared to 2007, average monthly net wages and salaries increased by 22.7% and reached 351 lat. Considering the consumer price growth that constituted 15.4%, the real increase of the wages and salaries comprised 6.3%

Among the Baltic States the highest gross wages and salaries in the 4th quarter of 2008, just like in previous quarters, were in Estonia – EUR 838, in Latvia – EUR 711, in Lithuania – EUR 672.

Compared to the 4th quarter of 2007, in the 4th quarter of 2008 Lithuania witnessed the highest increase – by 13.0%, Latvia – by 12.0%, and Estonia – only by 6.9%.

Average monthly gross wages and salaries in Baltic States (in euros)

More information on wages and salaries in Latvia can be found in the data base of the Central Statistical Bureau.

1) Public sector is state and local government commercial companies, as well as companies with state or local government part of capital 50% and more, foundations, associations and funds, and their commercial activities. Data on foundations, associations and funds and their commercial activities are not included in information.

2) Data are updated.

Prepared by Wages Statistics Section
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