Wage growth remained strong in Q2
Nominal gross wages growth decelerated only slightly to 8.7%, while real net wages rose by 6% in the second quarter of this year compared with the same period a year ago.
Wage growth in private sector continued exceeding that of the public sector. Wage growth was broad-based among sectors and was slightly below 5% only in education and other services.
Outlook: labour shortage will continue to push up wages
Labour market will be one of the main factors limiting potential growth going forward. It will put a lid on growth because companies will not be able to find enough employees and rising unit labour costs will start eroding cost competitiveness making it harder for some sectors to keep market shares let alone to expand them.
Annual wage growth might slow down during the rest of the year due to higher base. However, strong growth and labour shortage will push up average gross wage by around 8% this year, while employment will shrink.
For more information about this report, please contact Ms. Vaiva Šečkutė, +370 610 08360, Vaiva.Seckute@swedbank.lt
This email is sent through the Research Department’s web-based distribution system. As a subscriber you can change your settings regarding what publications you will receive by clicking “Change your settings” you can also unsubscribe by clicking "Unsubscribe".