Analytics, Financial Services, Latvia, Wages

In public sector during this period wages and salaries reduced by 6.7% (from LVL 497 to 463), but in private sector – by 1.5% (from LVL 431 to 424).

Compared to 4^th quarter of 2008, average gross wages and salaries in country in 4^th quarter of 2009 decreased by 12.1% (from LVL 500 to 440). As a result of the wage and salary optimization and abolition of bonuses and holiday allowances in state and local government institutions monthly average gross wages and salaries during this period in public sector diminished by 23.7% (from LVL 607 to 463), of which in general government sector – by 28.4% (from LVL 586 to 420). In private sector they reduced by 5.0% (from LVL 447 to 424).

Compared to 2008, monthly average gross wages and salaries in country in 2009 decreased from LVL 479 to 461 or by 3.9%. In public sector reduction comprised 10.9% (from LVL 567 to 505), of which in general government sector – 13.7% (from LVL 546 to 471), in private sector – 1.0% (from LVL 438 to 433).

Average monthly gross wages and salaries by sectors (LVL)

Number of employees, recalculated at full time units used to calculate monthly average wages and salaries, in 2009 compared to 2008 has reduced by 193.3 thsd or by 21.4%, but fund of wages and salaries - by LVL 1 270.3 mln or by 24.5%.

Compared to the corresponding period of 2008, the most notable reduction of monthly average gross wages and salaries in the 4^th quarter of 2009 was recorded in such sectors as education – 34.9%, public administration and defence; compulsory social security – 25.6%, human health and social work activities – 18.3%, arts, entertainment and recreation – by 17.8%, as well as water supply; sewerage, waste management, and remediation activities – 13.8%.

Compared to 2008, the most rapid reduction of average monthly gross wages and salaries in 2009 was observed in public administration and defence; compulsory social security – 17.8%, arts, entertainment and recreation – 11.8%, human health and social work activities – 9.7%, as well as in education – 9.4%.

Average monthly gross wages and salaries by kind of economic activity (LVL) (according to NACE Rev. 2 classification)

Data on Baltic States show that, compared to corresponding period of 2008, the most significant reduction of monthly average gross wages and salaries in 4^th quarter of 2009 was recorded in Latvia – 12.1% (from EUR 712 to 626), Lithuania – 8.7% (from EUR 672 to 614), Estonia – 6.5% (from EUR 838 to 783).

Changes of average gross monthly wages and salaries in Baltic States over the corresponding period of previous year (%)

More information on wages and salaries in Latvia is available in CSB data base.

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Explanations

Public sector is central and local government commercial companies, as well as companies with central or local government capital participation 50% and over, foundations, associations and funds, and their commercial companies. Data on foundations, associations and funds and their commercial activities are not included in information.

According to the European System of Accounts (ESA 95) the general government sector includes central and local government budgetary institutions, the social security fund and enterprises controlled and financed by central and local governments.

Absolute changes and changes in per cent are calculated from not rounded up data (wages and salaries with santims) or data not converted into thousands or millions.

* Data are revised (inclusion of new economically active merchants in population and specification of main kind of activity of merchants).