Real wages decreased less and less, a 0.6% decline is close to stopping nearly two-year fall
In the 3rd quarter of 2023, the average gross wages increased year-on-year in all 19 monitored sectors of the economy, eleven of them have already achieved real growth. Real wages of employees increased the most in real estate, healthcare and social work.
The average nominal monthly wage of an employee in the economy of the SR increased year-on-year by 8.3% to EUR 1,403 in the 3rd quarter of 2023. Gross wages of employees increased on average by EUR 107 compared to the same period of the previous year. Continued, rather significant, growth in nominal wages and falling inflation contributed for the third time in a row to softening the dynamics of the decline in real wages to the level of 0.6%. This represents the lowest depreciation of the real wages of Slovaks in the last seven quarters. Seasonally adjusted average wages increased by 1.4% compared to the second quarter of 2023.
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In the structure of the economy, all 19 monitored sectors of the economy recorded year-on-year growth in the average nominal wage. The increase in gross wages ranged from 2.1% in the education sector to 18.5% in real estate activities. Overall, higher year-on-year growth of more than 10% was recorded by employees in nine sectors of the economy. While in the spring months wages resisted inflation in only six sectors, in the 3rd quarter of this year their number increased to 11. Real growth of more than 7% was recorded in wages of employees in the sector of real estate, healthcare and social work. Employees of the sector of education, state and public administration recorded the most considerable drop in real wages, more than 6%.
The sectors employing the most people in Slovakia, trade and industry, recorded a slight increase in real wages. In industry, average wages rose nominally by 9.4% to the level of EUR 1,471, so real growth was 0.5%. In trade sector, the average nominal wages more significantly increased by 10.6% (to EUR 1,356), real wages of traders increased by 1.6%.
In general, the wage was lower than the average for the entire Slovak economy in a total of 11 sectors. Employees of accommodation and food and beverage service activities (EUR 876) and in other activities (EUR 991) continued to have the lowest average nominal wages. The average gross wage did not exceed a thousand euros only in these two sectors. At the same time, accommodation and food and beverage service activities also recorded one of the highest drops in real wages, up to 4.5%. In other activities, real wages declined by 0.6%.
Only employees in information and communication (EUR 2,301), financial and insurance activities (EUR 2,245) and in supply of electricity, gas and steam (EUR 2,187) had an average monthly wage above EUR 2,000.
From a territorial point of view, the average nominal monthly wage was higher than on average for the entire Slovak economy only in Bratislavský kraj (EUR 1,695). The average gross wages exceeded the threshold of one thousand euros in all eight regions of Slovakia for the fifth consecutive quarter. It currently ranged from EUR 1,093 in Prešovský kraj to EUR 1,331 in Trnavský kraj. In all regions, the average wage was higher than in the 3rd quarter of 2022, with the highest relative increase of 8.8% in Trenčiansky kraj. The real wage increased only in Bratislavský kraj (by 0.6%), in all other regions real wages decreased, the most in Košický kraj (by 3%).
In total, for the 1st to 3rd quarter of 2023, the average nominal monthly wage of an employee in the SR economy reached EUR 1,383. It increased year-on-year by 9.2%, its growth rate accelerated by 1 p.p. compared to the same period last year. The real wage decreased by 2.5%. Only four of the 19 sectors of the Slovak economy were able to withstand the pace of inflation.
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