The growth of wages and salaries slowed down in the 2nd quarter

According to Statistics Estonia, in the 2nd quarter of 2008, the average monthly gross wages and salaries were 13,306 kroons and the hourly gross wages and salaries were 78.26 kroons. The growth of wages and salaries that had remained around 20% in the last five quarters slowed down in the 2nd quarter. Compared to the same quarter of the previous year, the average monthly gross wages and salaries were by 15.2% and the average hourly gross wages and salaries were by 17.7% higher.

In the 2nd quarter of 2008 the consumer price index increased 11.4% and taking into account this fact the growth of real wages was only 3.4%. The growth of real wages was so small last in the 4th quarter of 2004 (3.3%).

Compared to the 2nd quarter of 2007, the average monthly gross wages and salaries increased the most in fishing, forestry and education (51.7%, 29.2% and 21.4%, respectively). The average monthly gross wages and salaries increased the least in financial intermediation; transport, storage and communication and in construction (9.8%, 12.1% and 12.2%, respectively).

Compared to the 2nd quarter of 2007, the average hourly gross wages and salaries increased the most in forestry, fishing and hotels and restaurants (41.8%, 40.7% and 23.7%, respectively). The average hourly gross wages and salaries increased the least in manufacturing; transport, storage and communication and in real estate, renting and business activities (14.3%, 15.1% and 15.1%, respectively).

The average gross wages and salaries were 12,769 kroons in April, 12,968 kroons in May and 14,160 kroons in June.

In short term statistics the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s social contributions and employer’s imputed social contributions to employees.

In the 2nd quarter of 2008 the employer’s average monthly labour costs per employee were 17,915 kroons and the average hourly labour costs were 119.61 kroons. Compared to the 2nd quarter of 2007, the average monthly labour costs per employee increased 15.6% and the hourly labour costs increased 17.9%.

Compared to the 2nd quarter of 2007, the average monthly labour costs per employee increased the most in forestry (51.5%) and the least in financial intermediation (10.1%).

Compared to the 2nd quarter of 2007, the average hourly labour costs increased the most in forestry (62.6%) and the least in financial intermediation (12.7%).

Statistics Estonia conducts the survey of wages and salaries statistics on the basis of international methodology since 1992. In 2008, the sample includes 11,089 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for actually worked time and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.).

Average monthly gross wages and salaries, 1st quarter 2004 – 2nd quarter 2008 (kroons)

  Year 1st quarter 2nd quarter 3rd quarter 4th quarter
2004 7 287 6 748 7 417 7 021 7 704
2005 8 073 7 427 8 291 7 786 8 690
2006 9 407 8 591 9 531 9 068 10 212
2007   10 322 11 549 10 899 12 270
2008   12 337 13 306    

Average monthly gross wages and salaries and monthly labour costs per employee, 2nd quarter 2008

 

Average hourly gross wages and salaries and hourly labour costs, 2nd quarter 2008

 

Source: Statistics Estonia