Higher productivity ensures better competitiveness without reducing salaries
The annual rate of salary reduction keeps going down - to 1.9% in the third quarter -, which is primarily a reflection of the hourly wage adjustment taking place earlier. A more pronounced annual drop was observed in the public sector (-4.5%), including in stated administration (-4.9%). The annual drop observed in the private sector is substantially smaller, 0.1%, for, to regain competitiveness, businesses have placed an emphasis not only on cutting of costs but also on more effective production and increased productivity.
Comparing the quarterly data, the hourly wage in the third quarter has risen somewhat - according to the seasonally adjusted data, by 1.6%. In some sectors, e.g., manufacturing, the rise in productivity has allowed a return to an increase in hourly wage both quarter-on-quarter and annually, without damaging competitiveness. Salary rises have mostly been ensured not by increasing the basic salary but by returning to result-based bonuses.