Romanias real wages stay flat in November, continuing two-year trend.

By bne IntelliNews January 14, 2013
The average net wage in Romania edged up by a real 1% y/y to RON 1,575 (EUR 348) in November, calculations based on statistics office data showed. But the small annual advance has not altered the medium-term trend of local employees' incomes, which have remained virtually steady for nearly two years. Higher earnings are seasonally reported in December each year, but this is prompted mainly by the wages paid in advance [seen in lower wages in January] and by year-end bonuses. The real earnings of local employees are unlikely to improve significantly this year from the very low levels as the government decided to freeze the wages of public employees [some one third of total] and the expected moderate growth of the economy will cap the wage hikes in the private sector also. Nonetheless, the government has hiked public wages by 10% as of January in a move aimed at bringing them back to where they were before the June 2010 fiscal austerity package. The slight improvement in retail sales towards the end of the year might be an effect of rising number of workplaces along with the households' possibly increasing propensity to consume after several years of excessive savings prompted by the economic uncertainty. The number of employees in the country has gradually increased during 2011-2012. Compared to 4.15mn in early 2011, the registered employment exceeded 4.3mn in H2 of 2012 - which is, however, well below the 4.8mn pre-crisis peak values.

Romanias real wages stay flat in November, continuing two-year trend.

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