Most recent GUS figures show that the average wage in companies increased by 4.6 percent year to year, while employment increased by 2.8 percent. – After a disappointing March, April brought a decisive upturn in wage growth dynamics. Real growth is fueled both by nominal wage growth and by deepening deflation. If this good result is confirmed by similarly strong showings in the coming months, we would justifiably say that low unemployment has finally caused significant wage pressure – comments Łukasz Kozłowski, expert of Employers of Poland.
Both nominal and real wage dynamics reached their highest levels since last March. Despite such a good showing, the average wage decreased by 0.9 percent compared to last month owing to the fact that March saw the payment of the so-called “13 wage”.
For some time, real wage growth maintained a fairly stable value between 3 and 5 percent year to year. In 2015, nominal wage dynamics even slowed down which was, however, compensated with deeper deflation. One significant diversion beyond the aforementioned interval occurred this March, but as it later transpired it was only temporary.
Systematically lowering unemployment, approaching its natural level, is a factor that may cause the more rapid wage growth to last for a longer period this time around. Companies find it increasingly difficult to recruit appropriately qualified employees, contributing to competition between employers who start to enter bidding wars of sorts by offering higher wages.
Łukasz Kozłowski, economic expert of Employers of Poland