Date
5/22/2019 1:59:30 AM
(MENAFN- ING)
Wages in the enterprise sector accelerated in April from 5.7% to 7.1% year-on-year, above the market consensus (6.5%). The detailed structure will be available next week we expect a relatively broad-based increase althoughthe construction sector will likely be the exception.
Wage growth should increase further in the coming monthsthough monthly volatility will probablybe much lower comparedto March and April. Overall, we forecast wage growth oscillating between 7% and 8% YoY for the rest of 2019.
There are two strong arguments supporting afurther increase, despite negative statistical effects:
The number of enterprises reporting wage increases stands at 38.2%, 10 percentage pointshigher thanthe corresponding period in 2018. This iscomparable to the historicalhighs of2007. The share of enterprises complaining about labour shortages remains stable comparedto 2018, while in other central and eastern Europeanstates (except for Hungary), we've seen adrop inlabour demand. MENAFN2205201902220000ID1098553482
Author:
Jakub Rybacki
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