The low inflation brought real wage growth
According to the flash report of the Hungarian Central Statistical Office (KSH), in January-March 2014 average gross and net wages were both up by 6.4 percent year-on-year. Consequently, as consumer prices in this period were practically unchanged, wages grew by 6.4 percent also in real terms. This increase will add to the rebound of household consumption and in turn boost the economy.
In January-March 2014, the average gross monthly wage of full-time employees within the national economy – including public work employees – was HUF 229 800. Employees within the private and public sectors (excluding public work employees) earned on average HUF 246 600 and HUF 231 800. Thus, gross and net wages in the private sector were both up by 5.5 percent, while in the public sector they increased on average by 9.0 percent (excluding public work employees).
As far as monthly data are concerned, in the third month of the year the average gross monthly wage of full-time employees was HUF 236 200 within the national economy, up by 2.8 percent year-on-year. Net wage – at HUF 154 700 – increased also by 2.8 percent in comparison to March 2013. Taking into account the very low inflation rate of 0.1 percent registered in the third month of the year, wages in real terms gained 6.3 percent within the private sector in March. In case the higher number of public work employees is also taken into consideration, the wage increase in real terms averaged 2.7 percent.
In addition, the private sector recorded significant employment growth as in March the number of new jobs increased by 52 thousand year-on-year. The rebounding labour demand of the private sector is a result of the economic upturn, lower taxes on labour, the Job Protection Action Plan and measures aimed at stimulating economic activity.
In addition to steady real wage growth, the Government is aiming to keep the number of people in employment above 4 million and reduce the unemployment rate below the so-called frictional unemployment level of 4 percent.
For detailed KSH data see www.ksh.hu.
Ministry for National Economy
Photo: www.vecseshirek.hu
Source: http://mtva.hu/hu/hungary-matters
