Price and wage changes in the 2nd quarter of 2006

01.09.2006


The data of Central Statistical Bureau show that the average monthly gross wages in the 2nd quarter of 2006 reached 292.00 lats, which is by 21.8% more than in the 2nd quarter of 2005. The most wages increase was in private sector – 23.2%, and in commercial companies with state or municipal capital share 50% and more (hereinafter referred to as state and municipal commercial companies) – 21.6%.

Notwithstanding more rapid increase of wages in private sector, it is still higher in public sector4). So, for instance, when carrying out an analysis of regular wages, it was 298.13 lats in public sector, and 250.86 lats in private sector in the 2nd quarter of 2006.

The monthly net wages in the country within this period increased by 21.7% and reached 209.04 lats. The actual growth of wages 1) in the 2nd quarter of 2006, in comparison with the 2nd quarter of 2005, was 14.5%.

When considering data by the largest branches, the most rapid growth of monthly gross wages in the 2nd quarter of 2006, in comparison with the 2nd quarter of the preceding year, was in construction – from 201 lats to 269 lats, or by 33%, as well as in health and social care – from 223 lats to 295 lats, or by 32%.

Under the regions of Latvia, the regular wages3) within the same period have grown most rapidly in Pieriga region – by 24.7%, and in Riga – by 20.7%, but the slowest growth was in Latgale region – by 15.5%.

Average monthly wages
(in lats)

2nd quarter of 2005

1st quarter of 20062)

2nd quarter of 2006

Increase of 1st quarter 2006 against 1st quarter 2005, %

Increase of 2nd quarter 2006 against 2nd quarter 2005, %

Total in country

gross wages

239.80

268.59

292.00

19.0

21.8

of which regular payments 3)

222.66

249.89

267.20

18.4

20.0

net wages

171.78

192.60

209.04

19.1

21.7

including:

public sector 4)

gross wages

279.63

300.99

337.72

17.8

20.8

of which regular payments 3)

251.61

281.51

298.13

18.3

18.5

net wages

199.82

215.40

241.15

18.0

20.7

budget institutions

gross wages

265.84

283.98

319.78

15.2

20.3

of which regular payments 3)

240.88

266.07

277.96

15.4

15.4

net wages

190.17

203.50

228.69

15.4

20.3

state and municipal commercial companies

gross wages

305.72

332.74

371.88

22.0

21.6

of which regular payments 3)

271.91

310.34

336.56

23.1

23.8

net wages

218.08

237.62

264.86

22.4

21.5

private sector

gross wages

217.43

251.47

267.96

20.7

23.2

of which regular payments 3)

206.39

233.10

250.86

19.2

21.5

net wages

156.04

180.55

192.16

20.7

23.1


Average monthly wages by forms of activity

(in lats)

2nd quarter of 2005

1st quarter of 2006 2)

2nd quarter of 2006

gross wages

of which regular payments

net wages

gross wages

of which regular payments

net wages

gross wages

of which regular payments

net wages

Total

239.80

222.66

171.78

268.59

249.89

192.60

292.00

267.20

209.04

Agriculture, hunting, and forestry

201.32

187.62

145.66

231.81

215 95

167.61

242.53

228.46

173.98

Fishery

161.23

150.03

117.55

195.16

191.20

142.46

180.78

167.93

131.95

Manufacturing – total

229.63

217.50

165.36

252.01

240.55

182.18

276.68

260.95

199.42

including:

mining and quarrying

253.43

246.50

181.44

283.58

274.09

203.29

315.38

306.05

225.60

Processing:

214.11

204.67

154.36

239.36

228.08

173.19

261.37

247.29

188.51

electric power, gas, and water supply

371.31

333.25

265.86

370.96

357.55

266.89

423.87

390.50

304.60

Construction

201.43

193.66

144.26

239.52

229.34

171.69

268.61

253.70

192.02

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

189.71

179.37

137.20

221.58

207.74

160.19

236.20

221.14

170.47

Hotels and restaurants

146.28

141.35

106.15

169.14

163.15

123.19

182.28

175.16

132.15

Transport, warehousing, and telecommunications, including:

281.46

253.15

200.89

307.36

280.14

219.34

325.94

300.86

232.36

surface transport; pipeline transport

231.35

203.57

165.56

243.99

231.75

175.51

278.88

254.59

198.80

water transport

828.57

769.15

689.64

1004.50

974.81

803.11

1183.19

969.21

966.42

air transport

762.07

727.40

527.03

910.44

906.54

622.43

997.35

965.93

679.29

auxiliary and supporting transport activities; operation of tourism agencies

335.76

312.48

236.35

336.40

316.48

237.04

362.69

340.16

256.90

mail and telecommunications

315.19

281.63

223.14

409.93

319.10

289.70

348.99

326.26

248.26

Financial intermediation

551.77

493.76

385.96

698.77

529.84

489.22

664.04

573.85

466.65

Operations with real estate, lease, computer services, science, and other commercial services

258.67

238.27

183.91

289.42

269.98

205.43

324.34

290.73

230.34

Public administration and defence; compulsory social insurance

335.26

287.97

238.20

356.62

320.27

254.69

414.80

332.43

294.60

Education

241.64

230.92

173.46

252.78

245.12

181.37

271.81

253.97

195.23

Health and social care

223.10

215.13

160.27

267.34

262.15

190.92

294.95

284.56

211.44

Public, social, and individual services

205.17

190.05

146.51

226.29

211.92

162.56

248.83

228.26

177.59

of which recreation, culture, and sports

201.08

187.36

143.13

231.54

216.52

165.53

256.64

233.72

182.77


Average monthly wages by regions

(in lats)

2nd quarter of 2005

1st quarter of 2006 2)

2nd quarter of 2006

Increase of 1st quarter 2006 against 1st quarter 2005, %

Increase of 2nd quarter 2006 against 2nd quarter 2005, %

Total in country

gross wages

239.80

268.59

292.00

19.0

21.8

of which regular payments 3)

222.66

249.89

267.20

18.4

20.0

net wages

171.78

192.60

209.04

19.1

21.7

including:

Riga

gross wages

272.47

308.89

335.37

20.2

23.1

of which regular payments 3)

249.85

281.94

301.54

19.3

20.7

net wages

194.04

220.17

238.75

20.4

23.0

Pieriga region

gross wages

220.99

253.29

277.54

20.1

25.6

of which regular payments 3)

208.68

240.02

260.27

20.2

24.7

net wages

158.42

181.47

198.23

20.0

25.1

Vidzeme region

gross wages

191.38

210.55

227.95

18.4

19.1

of which regular payments 3)

181.71

204.33

215.46

18.2

18.6

net wages

138.95

153.30

165.11

18.5

18.8

Kurzeme region

gross wages

206.80

220.14

239.41

13.9

15.8

of which regular payments 3)

195.15

211.39

226.57

14.2

16.1

net wages

149.53

159.88

173.89

14.2

16.3

Zemgale region

gross wages

196.35

216.63

234.79

19.0

19.6

of which regular payments 3)

186.33

208.98

221.68

18.6

19.0

net wages

142.80

157.05

170.45

18.3

19.4

Latgale region

gross wages

174.57

190.05

205.35

16.2

17.6

of which regular payments 3)

167.08

183.79

192.92

15.5

15.5

net wages

127.16

138.85

149.44

16.1

17.5

___________________
1) Calculated by dividing the growth rate of monthly average net wages in per cent by growth rate of consumption prices in per cent x 100 – 100.

2) Data were specified more exactly.

3) Not including irregular payment for work not calculated monthly – quarterly and annually bonuses, holiday bonuses, 13th salary, etc., as well as leave fringe benefits, leave benefits, and compensation for not used leave.

4) The public sector is made up by state and municipal institutions and commercial companies, as well as commercial companies with state or municipal share 50% and more, funds, societies, and establishments, and their commercial companies. Information was indicated without societies and funds and their commercial companies.

Explanation
Gross wages include leave benefit paid to officials of the system of Ministry of Interior Affairs for the time period from 2001 to 2004. Therefore, the growth of gross wages in the 2nd quarter of 2006 exceeds the growth of regular payments.

Prepared by Wages Statistics Section
of Social Statistics Department
Phone 7366666
Ervins Rekke