Press Release

In the 3rd quarter, average earnings constituted EUR 1 006

Data of the Central Statistical Bureau (CSB) show that in the 3rd quarter of 2018, compared to the 3rd quarter of 2017, the average monthly gross wages and salaries grew by 8.0 % or EUR 75, reaching EUR 1 006 for full-time work. Compared to the 2nd quarter of 2018, gross wages and salaries increased by 0.2 % or EUR 2.

Earnings in public sector grew faster

Over the year, wages and salaries in public sector grew faster than in private – by 8.5 %, compared to 7.7 %, respectively. The average gross wages and salaries constituted EUR 992 in private sector and EUR 1 036 in public sector, while in general government sector, which includes central and local government institutions, as well as enterprises controlled and financed by the central and local government, the average wages and salaries rose to EUR 993 or by 8.8 %.

Changes in average monthly wages and salaries by sector*
(euros)

 

Q3 2017

Q1 2018

Q2 2018

Q3 2018

Changes in Q3 2018, as % compared to:

Q3 2017

Q2 2018

Total

932

961

1005

1006

8.0

0.2

private sector

922

958

991

992

7.7

0.1

public sector

954

969

1035

1036

8.5

0.1

general government sector

912

923

984

993

8.8

0.9

*Data on 1st and 2nd quarter of 2018 are revised. Public sector does not include foundations, associations, funds and their commercial companies.

 

Net wages and salaries constitute EUR 744

In the 3rd quarter of 2018, the average net wages and salaries (calculated based on the labour taxes applicable at workplace) constituted EUR 744. Compared to the previous quarter, net wages and salaries fell by 22 euro cents. Over the year, net wages and salaries increased by 9.5 %, showing 1.5 percentage points higher rise than wages and salaries before taxes.

Considering annual consumer price growth of 2.9 %, the real increase in net wages and salaries comprised 6.4 %.

Changes in consumer prices and average wages and salaries
(as %, compared to the corresponding period of previous year)

Chart – Changes in consumer prices and average wages and salaries

 

Sharpest rise in human health and social care activities

Changes in the average wages and salaries are influenced not only by the rise of employee remuneration, but also structural changes on the labour market – enterprises that had started and stopped their business during the year, changes in the number of employees and workloads in various economic sectors, as well as state administrative measures in the fight against the shadow economy. The effects caused by the mentioned factors in general may be seen in the changes in the wage and salary fund and number of full-time employees, which are used in the average wage calculations.

In the 3rd quarter of 2018, compared to the 3rd quarter of 2017, gross wage and salary fund increased by 9.6 % or EUR 203.4 million, while the number of salaried workers, recalculated into full-time units, grew by 1.5 % or 11.4 thousand.

In the 3rd quarter of the year, the sharpest rise in earnings was recorded in human health and social work activities (of 15.9 %, with faster growth in human health activities), accommodation and food service activities (11.6 %, with the sharper rise in catering), other service activities (10.7 %, with sharper rise in washing and (dry-)cleaning; hairdressing and other beauty treatment; funeral and related activities; and other personal service activities), as well as mining and quarrying (10.6 %).

Highest earnings in financial and insurance activities and lowest in accommodation and food service activities

In the 3rd quarter of 2018, the highest wages and salaries for full-time work were registered in financial and insurance activities, information and communication, energy, public administration and defence, mining and quarrying, as well as professional, scientific and technical activities. In other sectors, the average wages and salaries before taxes were below the national average.

The lowest wages and salaries, in turn, were observed in accommodation and food service activities, education, other service activities (that includes activities of public and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities), real estate activities, as well as arts, entertainment and recreation.

Average monthly gross wages and salaries in Q3 2017 and Q3 2018 and changes thereof

Chart – Average monthly gross wages and salaries in Q3 2017 and Q3 2018 and changes thereof

 

Lowest earnings still recorded in Latgale

Compared to the 3rd quarter of 2017, in the 3rd quarter of 2018 regional breakdown shows the sharpest rise in the average monthly gross wages and salaries in Kurzeme (of 11.0 %), Pierīga (9.7 %), and Latgale region (9.2 %). The annual rise in Riga, having the highest wages and salaries (EUR 1 124), was the smallest – 7.1 %. The lowest average gross wages and salaries for full-time work still were observed in Latgale region – EUR 708, constituting 70 % of the national average.

Average monthly gross wages and salaries in Q3 2017 and Q3 2018 by region

Chart – Average monthly gross wages and salaries in Q3 2017 and Q3 2018 by region

 

Information on the average wages and salaries is broken down by region based on the office address of an enterprise or institution.

 

Methodological explanations

Data on the beginning of the year are revised each quarter in line with the routine data revisions defined in the CSB Revision Policy guidelines, as new economically active enterprises and institutions are added to the population of the statistical units surveyed, kinds and sectors of economic activities of enterprises are specified, additional or specified information from respondents or updated data from administrative data sources are received.

The data source used for wage and salary statistics is the sample survey of individual merchants, commercial companies, state and local government institutions, foundations, associations and funds, as well as administrative data sources.

The CSB calculations of average wages in public sector include central and local government institutions and their commercial companies, companies with central or local government capital participation of 50 % and over, excluding foundations, associations, funds, and their commercial companies.

According to the European System of Accounts, the general government sector includes central and local government institutions, social security fund, enterprises controlled and financed by the central and local governments.

The changes in the average monthly wages and salaries are calculated as not-rounded values, i.e., taking into account the value in euro cents.

When calculating the average monthly wages and salaries, the number of salaried employees is re-calculated into full-time units, thus eliminating the differences in salaries paid for different workloads ensuring comparability of indicators.

 

Media requests:

Communication Section
E-mail:
media@csb.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Lija Luste
Wage Statistics Section
E-mail:
Lija.Luste@csb.gov.lv
Phone: +371 67366917

 

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