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Increase in salaries in April - 3.4 percent only.
2012-06-04 09:04

 Unfortunately, private companies are not willing to increase salaries, which means we can afford less and less since the inflation is still high. Euro 2012 may only be a temporary fix the situation.

According to the data from the labour market, month after month, the economy is getting worse. GUS reports that an average salary in entrepreneurships is 3720 PLN brutto (not including small business, governmental organizations and finance sector), which is 50 PLN less than in March. In addition, year dynamics dropped from 3.8 percent to 3.4 percent. Meanwhile, prices in 2011 other way round increased in 4 percent, which means that in reality we can afford less.


 
Mateusz Sutowicz, an economist from Millenium Bank, says that dynamics in salaries is still low. This means that high inflation will negatively influence raise in salaries. For employees it meant that they will hardly benefit from this situation.

There are still not enough working places. During the month the amount of working places decreased in more than 8 thousands and comparatively to the last year the employment rate increased in 0.3 percent only.

After the winter, the labour market remains cool. The international economy is still uncertain, especially the political and economical issues in Greece

The chairman of human resources company Work Service, Tomasz Hanczarek says that in such circumstances the polish businessmen feel uncertain about the market security.

This is bad news for the economy since consumers’ expenses are responsible for two thirds of our GDP.

What is next? The 2012 UEFA European Football Championship is approaching and will cause additional (additional to standard summer season) increase in employment in hotel, gastronomy and other services and businesses. But mr. Hanczark believes that this will be a temporary remedy. The chairman of Work Service warns us that the labour market problems may remind of them again in autumn.

In general, economists consider that this situation will likely remain weak. The increase of employment will not reach 1 percent and the average dynamics in salaries will not surpass 4.7 percent. In conditions of 4 percent inflation the real increase in salaries in business sector will remain insignificant which in turn will limit the increase of consumption, said Raiffeisen Bank economist, Marta Petka-Zagajewska.

The majority of the economists working in labour market give their arguments against increase of Interest rate. The chief economist of Invest Bank, Wiktor Wojciechowski believes that slowdown in dynamics of employment and salaries may also indicate low dynamics in industry production.



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