Declining population driving up salaries (6)
Despite Estonia only registering slow economic growth, salaries have increased much faster, with low unemployment and a decrease in the working population the main reasons, says Erki Lõhmuste of the Ministry of Finance.
“There is great variance between economic sectors in salary growth rates, with faster growth in low-income areas,” Lõhmuste told Äripäev, adding that finance, information and communication sectors have also registered above average wage growth, mainly due to improving economic conditions in those sectors.
Lõhmuste said the omens are favorable for salary workers, as increased wages have been accompanied by falling prices, increasing purchasing power.
“The situation is not as great for businesses,” he said, adding that business profits have not increased since the end of 2013 and are near 2009-levels, when the economic crisis was in full effect.
Lõhmuste said the situation, where salaries will grow rapidly, will not last indefinitely and if growth in Estonia's main export markets does not pick up, salaries or staff numbers will be hit.
Statistics Estonia today revealed the average monthly gross salary in 1,082 euros in 2Q this year, up 5.8 percent compared to the same period a year ago.