Wages are rising too slowly – Banker

Wages are rising too slowly – Banker

The average salary in the enterprise sector increased by 3.5% yoy, but declined by 1.8%. The decline in August is likely due to the increase in employment of people with a relatively low salary.

 

This is seasonal in nature and involves mostly young people, often starting their first job. July is a month of holidays and employers pay benefits during this time to rest, which slightly inflate the average salary.

 

 

Employment is growing, but very slowly. In the corporate sector came suddenly 3.5 thousand. FTEs. This poor result taking into account the dynamics of GDP growth above 3%. At the same time we note a steady decline in the number of registered unemployed. Only in August of 24 thousand records are plotted. people. Probably only half of them found employment or started a business. Others lost their unemployed status due to failure to comply with formal obligations to the PUPs.

 

 

In theory, the macroeconomic situation of the country is not bad. However, it does not translate into real employment growth – we are far from the results of the pre-2012 years. The average wage is also increasing rachitycznie. Low inflation reduces real increases close to zero (in the last two months we note deflation).

 
 

Unfortunately, as it goes on the concept of sustainable development will have to be redefined. With GDP growth of 3% of employment and wages “stand still”. This is bad news for employees who, in practice, do not benefit from improvements in these sectors, which in practice consists in periods of strong growth. Naturally, salaries usually react with a delay, but then delayed start will count in years, not months. This indicates that the government must take more decisive action to stimulate the labor market.

 

Wage subsidies and cosmetic increasing flexibility of labor law does not bring tangible results. It is necessary to reduce taxes included in the remuneration. One swallow does not make, but even the European Commission has recently announced that the labor market requires stimulation of the tax by lowering labor costs. Could bureaucrats finally see through eyes?

 Luke Piechowiak