The decrease of the average monthly gross wages and salaries continued also at the end of the year

The average monthly gross wages and salaries decreased for the fourth quarter in succession at an accelerating pace compared to the same quarter of the previous year. In the 1st quarter of 2009 the decrease was 1.5%, in the 2nd quarter — 4.4% and in the 3rd quarter — 5.9%.

The real wages which took into account the influence of the change in the consumer price index decreased 4.6% in the 4th quarter. In the 1st, 2nd and 3rd quarter of 2009 real wages decreased by 4.5%, 4.1% and 4.9%, respectively. As of the end of December, the number of employees decreased 10.5% compared to the same period of 2008.

Compared to the 4th quarter of 2008, the average monthly gross wages and salaries increased only in two economic activities — in electricity, gas, steam and air conditioning supply (2.9%) and in real estate activities (1.7%). The monthly gross wages and salaries decreased the most in public administration and defence; compulsory social security activity (15.9%).

Compared to the 4th quarter of 2008, the average hourly gross wages and salaries increased also only in two economic activities — in real estate activities (6.6%) and in electricity, gas, steam and air conditioning supply (2.1%). The average hourly gross wages and salaries decreased the most in construction (13.8%).

The average gross wages and salaries were 12,226 kroons in October, 11,891 kroons in November and 12,662 kroons in December.

In the 4th quarter of 2009, the employer’s average monthly labour costs per employee were 16,730 kroons and the average hourly labour costs were 109,05 kroons. Compared to the 4th quarter of 2008, the average monthly labour costs per employee and the average hourly labour costs decreased 5.9% and 6.7%, respectively.

Compared to the 4th quarter of 2008, the average monthly labour costs per employee increased only in two economic activities — in electricity, gas, steam and air conditioning supply (5.1%) and in real estate activities (2.6%) and decreased the most in public administration and defence; compulsory social security activity (14.6%).

Compared to the 4th quarter of 2008, the average hourly labour costs increased only in two economic activities — in real estate activities (5.1%) and in electricity, gas, steam and air conditioning supply (3.5%) and decreased the most in public administration and defence; compulsory social security activity (13.9%).

Statistics Estonia conducts the survey of wages and salaries statistics on the basis of international methodology since 1992. In 2009, the sample includes 11,263 enterprises, institutions and organisations. The average monthly gross wages and salaries have been given in full time units to enable a comparison of different wages and salaries, irrespective of the length of working time. Calculations of the monthly gross wages and salaries are based on

payments for actually worked time and remuneration for time not worked. The hourly gross wages and salaries do not include remuneration for time not worked (holiday leave pay, benefits, etc.). In short term statistics, the average gross wages and salaries are measured as a component of labour costs. Labour costs include gross wages and salaries, employer’s contributions and employer’s imputed social contributions to employees.

Average monthly gross wages and salaries and monthly labour costs per employee, 4th quarter 2009

Average hourly gross wages and salaries and hourly labour costs, 4th quarter 2009