Wages - 2. quarter of 2004
Considerable slowdown of wages growth
Publication Date: 30. 08. 2004
Product Code: r-3101-04
In Q2 2004 , the seasonally adjusted average gross monthly wage per actual person was 0.2% up on the previous quarter (in nominal terms).
The nominal average wage reached CZK 17 817 and increased by CZK 740 (+4.3%) year-on-year . Over the same period consumer prices rose by 2.6% and real wage by 1.7% – i.e. least since Q4 1998.
In the business sphere, the average wage increased by CZK 991 (+5.9%) to CZK 17 924 and the real wage increased by 3.2%. After its rather distinct acceleration in Q1 2004 the growth of the average wage decelerated in Q2 2004, down to its level in 2003.
In the non-business sphere, the average wage decreased by CZK 102 (-0.6%) to CZK 17 462 and the real wage decreased by 3.1%. The wage development in the non-business sphere was affected by the adjustment to salary and wage conditions of employees in public services and administration, i.e. by the transition from 12-grade salary scale to 16-grade one effective as of 1 January, which contributed to the higher growth of wages in Q1 2004. On the other hand, the reduction in another (13th) pay (usually paid for the second and fourth quarters) from original 50% to current 10% resulted in the year-on-year drop in Q2 2004. The average wage dropped last in this sphere in Q2 1998 (nominally) and in 2000 (really).
The average nominal wage dropped in the following industries (CZ-NACE sections): ‘health and social work’ (-2.6%) and ‘public administration and defence, compulsory social security’ (-1.7%). ‘Education’ saw a mild increase in the growth of average wage (+1.3%). In real terms the average wages in these industries decreased by 5.1%, 4.2% and 1.3%, respectively.
In the first half of 2004 the average wage amounted to CZK 17 267, which translates into an increase of CZK 1 045 (+6.4%) on the corresponding period of the previous year, consumer prices increased by 2.5% and the real wage increased by 3.8%. In the business sphere the average wage increased by CZK 1 166 (+7.2%) to CZK 17 437, with the real wage growing by 4.6%, whereas in the non-business sphere the average wage increased by CZK 645 (+4.0%) to CZK 16 702, the real wage growing by 1.5%.
The highest average wage per actual persons (by CZ-NACE section) was recorded for financial intermediation (CZK 35 815) and the lowest for agriculture, hunting and forestry (CZK 12 067).
Inter-industry wage differentiation (by CZ-NACE division) remained almost the same in the 1st half of 2004. The variation coefficient of average wages increased by 0.2 percentage points to 34.5% y-o-y.
Internationally owned companies achieve the highest average wages in the long run (CZK 21 786). On the other hand, the lowest wages are recorded for entities owned by cooperatives (CZK 11 317).
Analysis - Commentary on the development of average wages of employees
Note
Contact: Ivo Makalouš, phone +(420) 274052159, e-mail: ivo.makalous@csu.gov.cz
Data source: CZSO direct quarterly survey – see the methodological note under the table for more details
End of data collection: 16 August 2004
End of data processing: 23 August 2004
Related publication: 3106-04 Registered Number of Employees and their Wages in the CR for the 2nd Quarter of 2004 to be brought out in September 2004
The data are preliminary; revised data will be available in late November 2004.