RIGA, Nov 28 (LETA) - In the third quarter of this year the average gross monthly wage in Latvia was EUR 1,703, which is an increase of 9.9 percent, or EUR 154, against the same period a year ago, according to the data released by the Central Statistical Bureau on Thursday.

In the private sector, average gross wages in the third quarter of 2024 increased by 9 percent to EUR 1,684, while in the public sector average gross wages increased by 12.3 percent to EUR 1,758.

In the general government sector, which includes state and local government institutions, the State Social Insurance Agency, as well as state and local government-controlled and financed capital companies, the average gross wage in the third quarter of this year was EUR 1,703, an increase of 12.3 percent compared to the third quarter of 2023.

Compared to the second quarter of 2024, average gross monthly earnings increased by 1.9 percent. In the private sector, average wages rose by 2.4 percent, in the public sector by 0.9 percent, and in the general government sector by 1.1 percent.

Hourly gross earnings averaged at EUR 11.59 in the third quarter of this year, an increase of 10.9 percent compared to the third quarter of last year and up 1.5 percent compared to the second quarter.

The average net wage in the third quarter of 2024 was EUR 1,231, or 72.3 percent of the gross wage, and rose by 9.4 percent over the year, outpacing the rise in consumer prices. Real net wage growth, adjusted for inflation, was 8.3 percent.

In the third quarter of 2024, median gross wages and salaries (in full-time units) amounted to EUR 1,385. Over the year, median gross earnings increased by EUR 135 or 10.8 percent (from EUR 1,250 in the third quarter of 2023). The median net earnings (after taxes) stood at EUR 1,016, rising 9 percent year-on-year.

According to the CSB, apart from the rise or decline in the remuneration of employees, average earnings are also influenced by the labor force demand and supply trends as well as structural changes of the labor market. Generally, the aforementioned factors cause changes in the wage and salary fund and in the number of full-time workers both of which are also used to calculate average earnings.

In the third quarter of 2024, compared to the third quarter of 2023, the estimated national wage and salary fund grew by 8.3 percent or EUR 289.1 million, while the number of salaried workers (in full-time units) reduced by 11,400 people, or 1.5 percent.

In terms of economic activities, the sharpest rise in the average earnings was registered in education (19.2 percent), thus significantly boosting annual growth in the public sector. Increased earnings were also registered in administrative and support service activities (15.9 percent), real estate activities (15.2 percent), and other service activities (which include activities of religious, political, etc. membership organizations, repair of computers and personal and household goods, washing and (dry-)cleaning of textile and fur products, hairdressing and other beauty treatment, funeral and related activities, etc. personal service activities) (14.4 percent).

The sharp annual rise in all the aforementioned sectors was caused by both higher wages and salaries and fewer workers. It should be noted that fewer workers were also registered in all other economic activities, except for water supply; sewerage, waste management, and remediation activities, accommodation and food service activities, financial and insurance activities, public administration and defense, as well as human health and social work activities.

In the third quarter of 2024, average gross monthly earnings above the national average (in full-time units) were recorded in financial and insurance activities (EUR 2,801), information and communication (EUR 2,732), professional, scientific and technical activities (EUR 2,121), energy sector (EUR 2,116), public administration (EUR 1,996), mining and quarrying (EUR 1,956), as well as human health and social work activities (EUR 1,772).

The lowest gross earnings were registered in accommodation and food service activities (EUR 1,106 before taxes).

The highest average gross earnings (in full-time units) were recorded in Riga (EUR 1,877) while the lowest in Latgale (EUR 1,223, which is 35 percent less than in the capital). The gap between the average earnings in Riga and regions has slightly narrowed in all regions, except for Riga region and Kurzeme where it stayed stable. The gap between the capital and Zemgale narrowed the most (by 1.3 percentage points).

In the third quarter of 2024, gross hourly earnings amounted to EUR 11.59, and over the year they have grown by 10.9 percent (from EUR 10.45 in the third quarter of 2023).