Hungary: Wage growth beats forecasts
Gross and net wages rose by 13% year-on-year in November. Labour shortages and wage settlements remain the main drivers
| 13% |
Net wage growth (YoY)Consensus (11.9%) / Previous (12.8%) |
| Better than expected | |
In Hungary, average gross and net monthly earnings increased by 13% year-on-year in November. The reading was a slight upside surprise, with market expectations spread in a narrow range of 11.3% to 12.6%.
Wages increased by 17.5% YoY in the public sector mainly due to the 50% YoY growth of one-month bonuses. The wage increase was less robust in the private sector, rising by 11.2% YoY. Labour shortages and wage settlements are still the main factors behind the growth in wages, along with the rise in minimum wages.
Regular wages in the business sector
The number of workers in the primary labour market increased by 79k YoY while the number of fostered workers--low-paid workers in a programme set up by the government--dropped by 48k YoY to 152k.
Evolution of labour demand (Jan-13 = 0)
The bottom line
In 2017 overall, we expect double-digit real wage growth due to the 13% wage increase and the 2.4% headline inflation rate.
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
Download
Download snap