Sodra: wages are growing even faster than last year, average earnings – 1465 euros

In the first quarter of this year, the full-time monthly salary averaged 1,465 euros and was 11 percent. higher than a year ago, Sodra prepared the Population Income Survey.

The average income received by the hands was 937 euros.

Wage growth is even faster than a year ago, when it was 10 percent. annual growth rate.

The number of employees remained practically unchanged during the year: the number of insured reached 1,111 million in March.

“One year after the start of the pandemic, the number of policyholders who worked for a full month returned to the pre-pandemic level, and the balance of admissions and dismissals reveals that trends will continue to be favorable, especially with the release of restrictions The wage growth was determined by the increase in the monthly minimum wage and the allowances for health professionals. But the pandemic affected different economic sectors differently, “says Kristina Zitikytė, Advisor to the Statistics Division, Analysis and Sodra Forecasts.

According to her, this year’s receptions exceed layoffs, and the situation is better than last year, plus fewer workers are unable to work due to childcare.

“Last year, a large number of people received certificates of incapacity to work and for two months about 60 thousand. the parents looked after the children after school and the kindergarten closed. This year, during peak months, there were at most around 20,000. parents who have obtained certificates of incapacity to work for the same reasons, ”said a Sodra representative.

However, the increase in revenues, he said, must be viewed with caution, as the situation is very different in individual economic sectors: “Not all recovery is the same, and not all would be similar.”

Medical salaries grew faster, but for some, the pandemic crossed

By up to 27%, the income of people working in healthcare activities has increased, compared to March and last year, when there were no quarantine restrictions.

Above-average wages in education (17%), professional and scientific activities (14%), retail and wholesale trade (13%), manufacturing (13%).

The pandemic has had a greater impact in those sectors where labor income and the number of insured are lower: accommodation and food service activities, travel organization activities, etc.

Even in the activities most affected by the quarantine, revenues grew, but at a slower pace.

“Those uneven changes in average and insured income, uneven recovery trends in all activities and occupations risk widening the gap between the highest and lowest income populations, between men and women, who are more likely to work in the sectors most affected by pandemics and quarantine, and other groups in society. “, – warns K. Zitikytė.

Where labor income is higher, such as in information and communication, financial and insurance activities, it was easier to transfer workers from home and they were able to continue working.

“If all sectors have been more or less affected during previous crises or major economic shocks, then the impact of this pandemic on people working in different sectors is different,” says K. Zitikytė.

In the activities affected by the quarantine, labor income is growing very slowly and the number of insured has decreased significantly. The number of employees in accommodation and food service activities has been reduced by 20%, in administrative and service activities, travel organization, artistic activities, entertainment and recreation by 5-6%. less.

The number of employees increased especially in Information and Communication activities (7%), as well as a change in transportation activities.

The income gap has widened

The income gap is the difference in income on paper between one-fifth of the population with the highest income and one-fifth of the population with the lowest income.

Since 2015, the gap has been steadily narrowing, but last year it widened, according to Sodra.

Last year, the difference between the highest and lowest salaries was 6.5 times, while in 2019 – 6.3 times.

The income gap was 5.1 times and the same as last year, although it had been steadily decreasing for several years before.

It is notable that there were fewer employees with the lowest incomes, up to 900 euros before taxes. But the number of people earning above-average income has increased. The income of the lowest earners increased by 6% during the year, and those of the highest earners, by 10%, said K. Zitikytė.

“On the one hand, it is to be feared that the pandemic has widened the gap and threatens to widen it further, if more low-income workers lose their jobs. So today the gap must be analyzed very carefully. Everything will depend on how the economic sectors affected by the pandemic recover once the quarantine and all aid measures have ended ”, says K. Zitikytė.

According to her, a clearer situation due to the income gap will stabilize after the quarantine, when the aid measures expire and the economy works normally again.

The number of foreigners working in Lithuania has decreased by 13 percent during the year, but in recent months their number has started to rebound again. His income grew by a similar amount, 12 percent, to 1,165 euros “on paper.”

Women were more affected by the pandemic

The pandemic was more painful for women, with more people losing their jobs than men and more men finding new jobs.

Comparing this year’s struggle with the same period last year, women in the labor market were still 0.2 percent. less when men – 1.6 percent. more. This difference is estimated at tens of thousands of employees.

However, women’s average earnings during quarantine and pandemics grew faster than men’s, by an average of 18 percent, compared to the same period last year. Men’s earnings grew 14 percent during that period.

In March, men earned an average of € 1,639 and women € 1,432 on paper (€ 1,036 and € 918 “in their hands”).

“This situation is due to the fact that more women work in all aspects in the most affected sectors, from housing and catering (74% of women) to education (78%) and health (86%). It was more difficult for women to maintain their jobs in certain sectors, but in other sectors their labor income growth was the fastest on the market, ”says K. Zitikytė.

It points out that women have an average length of service that is longer than men (43 years and 40 years), but men have accumulated more units of account, 33 and 49 units respectively, due to the higher long-term earnings of men .

“The pension of women is one fifth lower than that of men in Lithuania,” noted K. Zitikytė.

Sodra will soon release the salaries of men and women in sole proprietorships, and will encourage the public and transparent publication of compensation policies.

Employers fired people with disabilities more often

During the quarantine in the labor market, the number of people who lost their ability to work due to injury or health condition has decreased by thousands, and their loss of ability to work is offset by disability pension.

At the beginning of 2019, 45 thousand people were working. At the beginning of 2020, before the pandemic, almost 44 thousand, and this year, more than 41 thousand, according to Sodra.

However, the proportion of employed disability pension beneficiaries changed insignificantly and their average earned income grew steadily, as did that of other employed persons.

It is observed that, although the average income of disability pension beneficiaries is lower than that of those who perform the same job, the disability pensions generally cover this difference.

“The pandemic reminded us of the challenges faced by people with disabilities. Most of them perform less skilled jobs and during this crisis they faced significant challenges both from health threats (increased risk of developing more difficult diseases due to secondary illnesses ) as well as the physical and less qualified work performed ”, says K. Zitikytė.