As indicated by new GUS figures, in November the average wage among entrepreneurs increased by 4 percent year to year, while employment improved by 1.2 percent year to year. – A strong showing of the labour market shows that the upturn not only is not slowing down, it is even gathering more steam. A few months ago, deepening deflation was the main motor of increased real wage dynamics. Now, wages expressed in nominal values are starting to look better as well. However, despite recent positive developments, there is still much room for improvement, as indicated a.o. by the fact that employees’ real income is still not growing as fast as early this year – comments expert of Employers of Poland Łukasz Kozłowski.
November’s year to year average wage dynamics is slightly better than expected, but at the same time significantly higher than last month. However, it is still stuck in the 2.5-5 percent range and shows no marked growth trend. Therefore, price dynamics have become a key determinant of real wage growth. In light of this, the gradual extinguishing of deflation is not good news for household budgets. However, further decrease in unemployment may change the picture. Entrepreneurs are facing escalating problems with finding employees which naturally leads to increased nominal wages.
This scenario is made more plausible by the fact that the employment growth rate in companies is higher than earlier estimations suggested. Although the figures only pertain to ca. 1/3 of employees it is very likely that their indications are confirmed in the future.
Łukasz Kozłowski, economic expert of Employers of Poland