Poland: Wage growth outperforms
Wages reaccelerated in April after two months of stagnation. The outlook is positive and we expect double-digit readings in 4Q
| 7.8% |
Wage growth (YoY) |
| Better than expected | |
Enterprise sector wage growth reaccelerated in April from 6.7%YoY to 7.8%YoY (above consensus at 7.2%YoY), after two months of moderation. 1Q17 figures showed a broad-based stabilisation of wage growth in major categories (manufacturing, trade, construction etc.), but the trend has
The underlying momentum still remains positive. According to a central bank report, the share of firms considering wage hikes is increasing (albeit at a relatively small pace) and the ratio of unemployed workers per vacancy is at the lowest level on record. Enterprises continue to complain about a labour shortage, although this problem has not got any worse in the last quarter. That said, surveys from the official statistics office note that a growing number of manufacturing companies are reporting problems with labour costs.
Taking all these factors into account, we still expect a gradual increase in wage growth, with the headline figure reaching 10%YoY in 4Q18.
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
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