Analytics, Financial Services, Latvia, Wages

In the public sector in the second quarter of 2011 as compared to the second quarter of 2010, gross wages and salaries grew by 7.0% (from LVL 474 to LVL 507), of which in the general government sector by 8.1% (from LVL 436 to LVL 471), whereas in the private sector there was an increase of 5.0% (from LVL 423 to LVL 445).

In the second quarter of 2011 as compared to the second quarter of the previous year the fund of wages and salaries has grown more rapidly than the number of the employed. The number of employees recalculated in full-time units, which are used to calculate the average monthly wages and salaries, in this period increased by 2.5%, whereas the fund of wages and salaries – by 8.2%.

As compared to the first quarter, the number of the employed increased by 2.8% whereas the fund of wages and salaries – by 6.8%.

Changes in the average number of employees at full time units1) and fund of gross wages and salaries by sector (as % of the corresponding period of the previous year)

¹⁾ Number of employees used to calculate the average monthly gross wages and salaries.

As compared to the first quarter of 2011, the average monthly gross wages and salaries have increased by LVL 18 or by 3.9%. In the public sector during this period wages and salaries grew by 7.2% (from LVL 473 to LVL 507), whereas in the private sector – by 2.0% (from LVL 436 to LVL 445).

Average monthly gross wages and salaries by sector (LVL)

In comparison to the corresponding period of the previous year, the most notable growth in the monthly average gross wages and salaries in the 2nd quarter of 2011 was registered in the professional, scientific and technical service activities – by 11.0% ( this sector includes legal and accounting activities; business and management consultancy activities; architectural and civil engineering activities; advertising; research and development), in education – by 10.9%, in agriculture, forestry and fishing – by 9.7%, in water supply; sewerage, waste management, and remediation activities – by 9.3%, in arts, entertainment and recreation – by 7.3%, as well as in real estate sector – by 7.1%. The lowest growth can be observed in transport and storage sector – by 0.1%, in financial and insurance activities – by 2.0%, as well as in administrative and support service activities – by 2.2%.

In water supply, sewerage, waste management, and remediation sector wages and salaries were mostly influenced by increase in irregular payments next to the growth of 5.3% for regular wages and salaries. Also in electricity, gas, steam and air conditioning supply the increase in wages and salaries of 5.2% was influenced by irregular costs, as the regular wages and salaries decreased by 0.9%. The increase in arts, entertainment and recreation sector can be partly explained with dismissal of lower paid employees.

The increase in wages and salaries in other sectors during the second quarter of this year, as compared to the relevant period of the previous year, was mostly influenced by increase in the amount of work, as well as by the increase of 11.0% (from LVL 180 to LVL 200) in the minimum monthly wages and salaries from the beginning of this year.

Average monthly gross wages and salaries by main kind of economic activity (LVL)

Data on the Baltic States for this period show that the most significant growth in wages and salaries was recorded in Latvia – by 5.5% (from EUR 632 to EUR 667),whereas in Estonia there was an increase of 4.2% (from EUR 822 to EUR 857) and in Lithuania – of 2.5% (from EUR 595 to EUR 610 ).

More information on wages and salaries in Latvia is available in the CSB data base.

Explanations

Public sector is central and local government institutions and 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 institutions, the social security fund and enterprises controlled and financed by central and local governments.

* Data are revised.