Labor shortage continues to push Hungarian wages up
pixabay
The average gross wage in Hungary rose 13% year-on-year to HUF 322,955 in November, the Central Statistical Office (KSH) said on Friday. Net wages grew at the same pace as gross wages, also climbing 13% to HUF 214,764.
The KSH noted that wages have been boosted by a higher minimum wage, as well as pay increases in certain areas of the public sector and at state-owned utility companies. Calculating with November 12-month inflation of 2.5%, real wages were up by 10.24%, national news agency MTI reported.
Excluding the 151,800 Hungarians on state work programs, the co-called fostered workers, the average gross wage rose 11.6% to HUF 337,147 in November, while net wages also increased 11.6% to HUF 224,202.
The number of fostered workers was slightly down compared to the 155,000 registered in October. Full-time fostered workers earned gross HUF 82,171 on average during the month, 1.8% more than in the same period a year earlier. Their number fell 24.1% year-on-year.
Regular gross wages rose 13% to HUF 284,731 including fostered workers, and rose 11.7% to HUF 296,687 without them. Excluding fostered workers, business sector gross wages rose 11% year-on-year, and regular wages in the sector rose by 12.3%. Also without fostered workers, gross public sector wages were up 13.5% in the year to November, including a 10.4% rise in regular wages. Non-regular wages jumped 41.4%.
January-November gross wages were up 12.8% including fostered workers, and rose 11.7% without them, compared to the equivalent 11-month period a year earlier. Excluding fostered workers, business sector gross wages rose 11.3% and public sector wages rose 13.4% in the period.
The number of employees was up 1% overall at 3,016,600 in November, and rose 1.6% year-on-year in January-November. Excluding fostered workers, the rise was 2.8% for November and 3.1% for the first 11 months.
The number of business sector employees rose 2.3% to 2,032,800 in November without fostered workers. The number rose 3% in January-November. Without fostered workers, the number of public sector employees was up 1.7% at 701,500 in November. The January-November figure was up 0.7% year-on-year.
Analysts interviewed by MTI said gross wages increased in excess of expectations in November on a growing shortage of qualified workforce, combined with the effects of wage agreements and public sector pay rises.
Analyst Dávid Németh of K&H Bank said he expected wages to grow slightly more slowly in 2018 than last year, predicting net wage growth of more than 10% and real wage growth of 8% this year.
András Horváth of TakarékBank forecast average wage growth of 9% this year, with the minimum wage and the skilled minimum wage increasing by a further 8% and 12%, respectively. Real wages could grow by more than 6%, considering prospective inflation of 2.7%, he added.
Policymakers Cut Central Bank Base Rate by 50 bp to 7.75%
Bulgaria's Household Income, Spending Rise 20% in 2023
Spar Magyarország Revenue Climbs Close to 16% in 2023
Spago Budapest Offering Unique Sunday Brunch Experience
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
