In the 2nd quarter the average monthly gross wages and salaries grew, but the real wages continued to fall

The real wages which took into account the influence of the change in the consumer price index and which shows the purchasing power of wages and salaries, decreased for the eleventh quarter in succession. In the 2nd quarter of 2011 compared to the same quarter of the previous year, the real wages decreased by 1%. In the 2nd quarter of 2011, the average hourly gross wages and salaries were 5.08 euros and they increased by 4.8% compared to the same quarter of the previous year.

The monthly gross wages and salaries increased for the fifth quarter in succession. Comparing the monthly gross wages and salaries with the 2nd quarter of 2008, only in eight economic activities the average monthly gross wages and salaries of the economic activity has reached the level of 2008. In eleven economic activities the level of the average monthly gross wages and salaries of the economic activity is still lower than in 2008.

Compared to the 2nd quarter of 2010, the average monthly and hourly gross wages and salaries increased the most in real estate activities (11.8% and 13.7%, respectively), and decreased the most in other service activities (4.2% and 6.9%, respectively).

The average gross wages and salaries were 801 euros in April, 860 euros in May and 913 euros in June.

According to the Wages and Salaries Statistics Survey, as at the end of June, the number of employees increased by 2.8% compared to the same period in 2010.

In the 2nd quarter of 2011, the employer’s average monthly labour costs per employee were 1,159 euros and the average hourly labour costs were 7.75 euros. Compared to the 2nd quarter of 2010, the average monthly labour costs per employee increased by 4.1% and the average hourly labour costs by 3.5%.

Compared to the 2nd quarter of 2010, the average monthly and hourly labour costs per employee increased the most in real estate activities (11.1% and 13.8%, respectively), and decreased the most in other service activities (4.9% and 7.3%, respectively).

Statistics Estonia conducts the survey of wages and salaries statistics on the basis of international methodology since 1992. In 2011, the sample includes 11,277 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on payments for actually worked time and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.). In short term statistics, the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s contributions and employer’s imputed social contributions to employees.

Average monthly gross wages and salaries and monthly labour costs per employee, 2nd quarter 2011

Average hourly gross wages and salaries and hourly labour costs, 2nd quarter 2011