Analytics, Financial Services, Latvia, Markets and Companies, Wages
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Friday, 29.03.2024, 11:26
In Q3, average gross earnings constituted 925 euros in Latvia
Compared to the
previous quarter, in the 3rd quarter of 2017 gross wages and
salaries fell by 0.2% or two euros.
Compared to the
3rd quarter of 2016, in the 3rd quarter of 2017
gross wages and salaries fund rose by 8.3% or 162.3 million euros, whereas
the number of salaried workers (recalculated into full-time units) grew only by
0.7% or 5.7 thousand.
Changes in average monthly
wages and salaries by sector (euros)
|
Q3 2016 |
Q1 2017 |
Q2 2017 |
Q3 2017 |
Changes,% |
|
Q3 2017,
compared to Q3 2016 |
Q3 2017,
compared to Q2 2017 |
|||||
Total |
860 |
879* |
927 |
925 |
7.5 |
-0.2 |
private
sector |
848 |
872* |
914* |
913 |
7.7 |
-0.1 |
public
sector** |
885 |
897 |
954 |
954 |
7.8 |
0.0 |
general
government sector |
840 |
847 |
901 |
911 |
8.5 |
1.2 |
* Data are revised.
** Does not include foundations, associations, funds and their commercial
companies.
In the 3rd quarter
of 2017, the average net wages and salaries constituted 674 euros, which
is 6.7% more than in the 3rd quarter of 2016. In general, the
average net wages and salaries rose slower than the earnings before taxes.
The increase in
consumer prices registered in the 3rd quarter of 2017 (of 2.9%,
compared to the corresponding period of the previous year) had downward effect
on the purchasing power of the employed population – the real wages and
salaries grew only by 3.7%.
Compared to the
3rd quarter of 2016, in the 3rd quarter of this
year similar wage and salary rise was observed in both private and public
sector – of 7.7% and 7.8%, respectively, whereas increase in general government
sector was slightly higher – 8.5%.
In the 3rd quarter
of 2017, the average gross wages and salaries amounted to 913 euros in
private sector and to 954 euros in public sector, whereas in general
government sector, which includes central and local government institutions, as
well as enterprises controlled and financed by the central and local
government, it amounted to 911 euros.
Compared to the
corresponding quarter of the previous year, in the 3rd quarter
of 2017 the increase in wages and salaries was recorded in all sectors, except
for electricity, gas, steam and air conditioning supply (drop of 4.3%) and real
estate activities (decline of 0.5%).
The sharpest
rise in the average wages and salaries was observed in professional, scientific
and technical activities (that include legal and accounting activities,
advertising and market research, architectural and engineering activities,
management consultancy activities, scientific research and development, etc.) –
of 10.1% (with the sharpest increase in activities of head offices;
management consultancy activities, advertising and market research as well as
scientific research and development ), public administration and education – of
9.6% in each, mining and quarrying – of 8.8%, manufacturing – of 8.6%,
wholesale and retail trade – of 8.2% (with the sharpest rise in wholesale),
arts, entertainment and recreation – of 8.2%, and administrative and support
service activities – of 8.0% (with the highest growth in office administrative,
office support and other business support activities and security and
investigation activities).
In all mentioned
highest-level sectors of the classification of economic activities, except for
wholesale and retail trade, the rapid increase in the average wages and
salaries was influenced by the fast rise in the wage and salary fund. Whereas
in wholesale and retail trade, wage and salary fund increased, but the number
of full-time employees declined.
Compared to the
corresponding period of the previous year, in the 3rd quarter
of 2017 the drop in the average wages and salaries in electricity, gas, steam,
and air conditioning supply was affected by the reduction in irregular premiums
and bonuses (regular earnings grew by 4.4%), while in real estate activities
faster increase was registered in the number of full-time employees, as
compared to the growth in the wages and salaries fund.
In the 3rd quarter
of 2017, the highest wages and salaries for full-time work were registered in
financial and insurance activities, information and communication and energy,
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, 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), education, real estate activities, as well as arts,
entertainment and recreation.
Average monthly gross wages and salaries in Q3 2016 and Q3 2017 and changes thereof
Compared to the
3rd quarter of 2016, in the 3rd quarter of 2017
regional breakdown shows the sharpest rise in the average monthly gross wages
and salaries in Vidzeme, Latgale and Kurzeme regions – of 9.6%, 9.1% and 8.4%,
respectively. Annual rise in Riga that had the highest earnings in the 3rd quarter
of this year (1041 euros) was the lowest among all regions – 7.1%. The
lowest average gross wages and salaries still were observed in Latgale region –
646 euros for full-time work, followed by Vidzeme with 747 euros,
Kurzeme with 785 euros, Zemgale with 791 euros, whereas indicator
registered in Pierīga region amounted to 866 euros.
More information
on wages and salaries in Latvia is available in the CSB website section Wages and Salaries – Key Indicators. Data on wages and salaries are published in the database section
Wages and Salaries (Short term statistical data and Annual statistical data).
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.