Brisk hiring of additional workers boosted wage growth
Economist at Eesti Pank
Data released today by Statistics Estonia show the growth in the average wage accelerated from 7.3% in the second quarter to 7.8% in the third. Wage growth accelerated on a quarterly basis as well, seasonally adjusted.
Data from the Estonian Institute of Economic Research show employers expecting that employment will increase further to be in the majority. At the same time there has been an increase in the share of employers that consider labour shortages to be a factor impeding production. The growth in employment in most parts of the private sector still means that the level is returning to where it was before the pandemic. When lots of employers are all looking for new staff at the same time, pressure to raise wages increases, especially as the Covid-19 crisis last year meant that wages rose more slowly.
The number of registered unemployed is currently substantially lower than it was at the peak of the crisis, but there are still some ten thousand more people unemployed than there were in the year before the pandemic. To ease pressure on wages, it is important for job offers to reach job seekers efficiently, and for the unemployed to have good opportunities to improve their skills.
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