Salary rises mostly for younger employees

Wages continue to rise moderately. In the fourth quarter of 2011, the average salary for full-time job was  4.5% larger than a year ago.  

The amount of money received monthly by the average worker is increasing at an even faster rate (as a result of workload  rise both due to the increase of the number of hours worked in the main jobs and  secondary jobs becoming more widespread). For instance, I used State Revenue Service posted by the Central Statistical Bureau to estimate that the average income of employees at the end of 2011 was 6% higher than a year ago (in the private sector - more than 8% higher). Taking into account a substantial employment rise, it is consistent with ,  substantial pluses in retail turnover is only logical. Although the salary recalculated for full-time employment (official CSB data) rose in 2011 as much as consumer prices (12-month average inflation was 4.4% in December), the rise in income from work has outpaced price increases and thus the majority of employees improved their well-being in 2011.

The current rises in salaries primarily affect people under 45. Youngsters up to 20 years of age who suffered most from the crisis (were subject the most both from layoffs and salary cuts ) at the end of 2011 received a more than 15% higher wage on average than a year ago (albeit it must be noted that this age group is small constituting only about 1% of all salary recipients). Furthermore, remuneration for employees of 30 to 45 years of age, who were least affected by layoffs and salary cuts during the crisis, increased by robust 8% as well.  For employees over 60, however, salary rises tend to be an exception: in this age group, the average salary grew less than 2% year-on-year. That might be an indication that younger employees had their work load increased or had achieved outstanding work performance more often. Compared to the pre-crisis years, salary increases now are primarily motivated by the contribution of the particular employee instead of inflation, national holidays or emigration threats.

APA: Krasnopjorovs, O. (2024, 25. jun.). Salary rises mostly for younger employees . Taken from https://www.macroeconomics.lv/node/2248
MLA: Krasnopjorovs, Oļegs. "Salary rises mostly for younger employees " www.macroeconomics.lv. Tīmeklis. 25.06.2024. <https://www.macroeconomics.lv/node/2248>.

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