Average gross wages in Hungary rose by an annual 2.2% in August, the Central Statistical Office (KSH) said. Excluding fostered workers, who earn less than the minimum wage, average gross wages in August rose by 3.9% in twelve months. Gross wage growth slowed from an annual 3.0% in July. Excluding fostered workers, gross wage growth slowed from 4.3% in July.
The slowdown is “not worrying,” Buda-Cash analyst Bálint Török told MTI, adding that in light of a virtually negative inflation a growth of 2.2% was “substantive”. ING Bank analyst András Balatoni said that Hungary’s labour market has further consolidated and the number of employees had increased by 2.7% in August compared with the same month last year. Employment in the public sector was also up by 4% without fostered workers, which reflects the country’s economic growth, he added.
Meanwhile the National Economy Ministry confirmed in a second reading of the data, that Hungary’s cash-flow-based budget deficit, excluding local councils, posted a 14.2 billion forint surplus in September, narrowing the gap to 844.6 billion forints, or 85.8% of the full-year target. The ministry noted the favourable effect on the budget balance in September of more revenue from the pick-up in economic growth, the expansion of employment and the mandatory connection of tills to the tax office.
via hungarymatters.hu photo: public domain