Snap7 September 2018Updated 2 minutes ago

Romania: Net wages jump in July

This is a slight deceleration compared with the 14.3% growth in June, but seen in conjunction with a historically low unemployment rate, this reveals a tight labour market

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Wages in the public sector are up by 21.5% YoY driven by 19.3% YoY growth in the education sector and an even more impressive 31.1% in public healthcare. This keeps the pressure elevated on the private sector as well, which posted an 11.0% YoY increase.

Uneven developments

NIS, ING
NIS, ING

Inflation eroding some of the wage growth

NIS, ING
NIS, ING

The revised employment data released by the National Institute of Statistics has shown that the unemployment rate has reached a new historical low since the time the new data is available (1997), at 4.2% in July.

Job creation slowing down

NIS, ING
NIS, ING

With job creation slowing down and limited fiscal impulse going forward, the pace of wage rises could continue to ease a bit. Still, pressures are not likely to diminish that much due to state wage policies and it could be exacerbated by the electoral calendar.