SIMILAR ARTICLES

Ranking of discernment: Spectacular increase in August in the difference between Romania’s other EU countries’ borrowing costs

The long-term interest rate fell below zero in the Eurozone and dropped to only 0.28% on average at the EU level, half as compared to… Mai mult

Tourism balance drops to minus 36%, despite billions of public money that Government pumped into the market

Net costs for the state with holiday vouchers for public sector employees and the VAT cut for tourism will amount to RON 1,878 million in… Mai mult

Continuing quantitative easing: how justified is it? (III)

In this last article from the series devoted to the analysis of the quantitative easing performed by the European Central Bank (ECB), we will deal… Mai mult

Continuing quantitative easing: how justified is it? (II)

In this second article of the series dedicated to the analysis of the quantitative easing performed by the European Central Bank (ECB), we will focus… Mai mult

Continuing quantitative easing: how justified is it? (I)

The European Central Bank (ECB) has restarted, in the summer of 2019, its rhetoric concerning the necessity of a new round of quantitative easing, i.e.… Mai mult

Cronicile

Purchasing power declined for second consecutive month: situation by fields of activity

de Marin Pana , 21.7.2018

The average gross wage announced by the INS for May 2018 was 4,512 lei, 0.4% lower than in the previous month. Net nominal average wage decreased by 0.3% and reached 2,704 lei, exactly the same as in March.

Given the higher euro/leu average exchange rate in the month when money was received and the change in the ratio between local prices and the EU average (52%, recently published by Eurostat), the purchasing power in euro decreased to 1,116 euros.

As a result of the inflation recorded, the wage index compared to April 2018 was only 99.2%, and the increase compared to the same month of the previous year dropped again from + 10.1% in March and + 9.0% in April, to 8.5% in May.

The real reference wage (the purchasing power of the money received expressed as an index related to October 1990) also went down on the same trend, from 195.7% in March to 195.3% in April and only 193.5% in May 2018.

*

  • Evolution of average national wage and purchasing power over the last 17 months
  • Month  Net average wage (lei)           Euro/leu           Net average wage (euro) (euro pcs)  Purchasing power (%, 12 months)

*

Increases by sectors – health ranks first, manufacturing sector last

By sectors, the highest wage increases were recorded in the public sector, with the health sector ranking first by far (+ 32.4% nominal and + 25.6% in real terms).

Above the education sector (+ 23.5% nominal and + 17.2% real) and the public administration (+ 17.6% and 11.6%, respectively), the financial and insurance sector slipped in (+ 23.5% and + 17.2%, respectively).

Excluding constructions (+ 16.1%, in nominal and + 10.1%, in real terms), all the other areas of activity were below the national average (obviously pulled up by the public sector), with the manufacturing sector positioned somewhere at half the salary increases in terms of purchasing power (+ 10.1% in nominal and only 4.5% in real terms).

Noteworthy, much better correlated with the GDP growth (4% gross and 4.2% seasonally adjusted on Q1 2018).

Against the background of a decreasing average wage across the economy, manufacturing sector recovered (by one percentage point) above the 90% threshold. However, that remains a clearly different positioning compared to Western economies, where wages in the manufacturing sector are, usually, above the national average.

*

  • Distribution of nominal wage increases by sectors between May 2017 and May 2018
  • Sector             Wage May 2017         Wage May 2018         Change (Nominal        Real)
  • Health
  • Financial intermediations, insurance
  • Education
  • Public administration, defence, etc.
  • Construction
  • Average on the economy
  • IT&C
  • Hotels and restaurants
  • Manufacturing industry      
  • Transport
  • Trade

*

Purchasing power growth values in the transport and trade sectors dropped to relatively low levels (2.6% and 2.3%, respectively), namely far below the potential given by the economic growth, and are at the bottom of the list at the level national.

All in all, the distribution of benefits of the economic growth does not seem to be fair, as these sectors are placed at only one-fifth of the advance in the wage registered by the public administration.

Mergeți în homepage ›

Publicat la data de 21.7.2018

Lăsați un comentariu


NEWS

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult

"At a distance from books": 85,000 teachers (one third of educational staff) are graduates of distance learning

Approximately 85,000 teachers are graduates of distance learning (ID) programs, Education Minister Ecaterina Andronescu said at a meeting with school inspectors from Caras-Severin County. The… Mai mult