In October, wages increased faster than inflation across the economy for the first time in more than two years, while employment continued to decline

In October 2023, according to the first data, wages increased faster than inflation in all 10 sectors monitored monthly, i.e. they reached real growth. This was recorded for the first time since August 2021. However, the economy continued to record a decline in employment, with the exception of construction and information and communication.

The average nominal monthly wage¹⁾ nominally increased year-on-year in all 10 sectors monitored monthly in October 2023. The most, by 17.6%, it was in the sector with the lowest wages, i.e. in food and beverage service activities to EUR 721. The wages of employees also grew at a double-digit rate in industry to EUR 1,477, in wholesale to EUR 1,441, in retail trade to EUR 1,088 and in accommodation to EUR 1,093. The growth of wages in other selected sectors ranged from 7.9% in sale and repair of motor vehicles, where the average wage amounted to EUR 1,367, to 9.8% in selected market services in the amount of EUR 1,370 in October.

In October 2023, the real wages of employees also rose more than a year ago, i.e. the wage growth in all sectors exceeded the inflation. Although the monthly wage data represent only preliminary data, October's developments indicate that the period of real wage declines may soon be over.

Remuneration for work increased most significantly in real terms, by 9.8%, in food and beverage service activities, and also by 4% in industry. The level of growth exceeded 3% in wholesale, retail trade and accommodation.

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In total, for the ten months of 2023, the nominal monthly wage increased in all 10 monitored sectors, by double digits in up to 8 of them. It increased the most in sectors with low wages: in accommodation by 14.6% to EUR 1,070, in food and beverage service activities by 14.4% to EUR 701 and in construction by 12.8% to EUR 1,010.

Real wages have increased since the beginning of the year in 5 out of 10 monitored sectors. They increased the most in accommodation and in food and beverage service activities. The real wage of them was higher than 2.5%. Wages grew at a more moderate pace in construction, selected market services and retail trade. They remained at the level of last year in wholesale. In other sectors, real wages decreased year-on-year.

Year-on-year development of employment

In October 2023,  a year-on-year decrease in employment²⁾ was recorded by a majority, i.e. 8 out of 10 monthly monitored production sectors. In the largest employer sector, industry³⁾, the number of employees decreased year-on-year by 0.9%, while employment in this sector has been falling for 20 months, with the exception of March this year. The most significant year-on-year decrease in the number of employees by 7.7% was recorded in food and beverage service activities. Retail trade, wholesale and accommodation sectors also recorded a decline in employment of more than 2%.

Employment rose only in construction by 1% and in information and communication by 1.7%.

In total, since the beginning of 2023, the number of employees has increased year-on-year in only 4 of the 10 monitored sectors, i.e. in construction, accommodation, information and communication, and in sale and repair of motor vehicles. Employment in these sectors increased only slightly from 1% to 2.1%. Other sectors reported a decrease in the number employees, the most significant in wholesale by 2.7%.