The pandemic cut the income of a third of the population: part lost more than 150 euros

Public opinion and market research company Spinter tyrimai in 2020. November 18-29, news portal Delphi commissioned a public opinion poll. The study involved 1,005 residents between the ages of 18 and 75.

According to the survey, the pandemic did not affect more than half (54%) of the population’s income. They fell by a third (32%) and increased by one in ten (10%). Income decreased more often for representatives of lower income, lower education, residents of district centers.

Almost half (47%) of those surveyed who indicated a decrease in income say their wallets have become more expensive than 150 euros due to the pandemic. 15 percent of those surveyed, decreased between 50 and 100 euros, almost the same, by 16 percent. – He pointed out that his income had fallen from 101 to 150 euros. Each tenth (10%) fell to 50 Eur.

The largest decrease in income (150 EUR and above) was reported most often by men, older people and representatives of higher education.

Of those who indicated that their income had increased this year, almost half (48%) of the population say they earn more than 150 Eur per month this year. That the last year. The income of each resident quarter (25%) increased by 101-150 EUR and by 16%. – EUR 50-100

The survey showed that the largest increase (150 EUR and above) was mentioned most often by those with higher education, representatives of the highest income and residents of large cities.

“Merry Mountains” in salaries

Evaluating the survey results, Luminor’s chief economist Sigismund Mauricas notes that last year wages should have risen for more than 10% of the population.

“Pensions, public sector wages and the minimum wage for most of them increased rapidly, the fastest in the Baltic States. Part of the population decreased, but that number was not that great. If a person has held a job , it has definitely increased the salary of a great part ”, comments the economist.

“Yes (in Lithuania – Delphi) the minimum wage has risen, the person does not say that his wage has risen, because as it was the minimum, it remained that way. Or since you earn an average salary, you earn, even if it has risen. People relatively appreciate the change, ”he adds.

Ž. Maurice welcomes the survey, which found that the majority (54%) of those surveyed said their income had not changed: “Good for the crisis year.”

Indrė Genytė-Pikčienė, chief economist at INVL Asset Management, says that salary dynamics in 2020, especially in the private sector, is like a hill: 1.3 percent was recorded in the second quarter. However, in the third quarter, when the economy recovered, private sector wages rose 5.3 percent. Throughout the year, pre-tax wages grew on average one-tenth in the country, in the public sector by up to 12.7 percent and in the private sector by 9.5 percent.

“Faced with this pandemic, states are using fiscal stimulus measures and increasing spending, as well as increasing public sector wages. Lithuania is no exception, the government has implemented planned wage increases and additional wage increases have been made in sectors. at the height of the pandemic In the third quarter of 2020, paper wages in the public sector reached 12.7 percent, higher than in the corresponding period a year ago.

Due to the situation and future challenges, it has grown particularly fast for healthcare workers. For them, the average annual salary increased by up to 20.5 percent. Salaries for officials and specialists in the field of national defense and compulsory social insurance also increased faster than the national average. The salaries of employees in the education sector have increased as much as the national average, by 10.4%, ”says the economist.

At that time, the average wage growth in the private sector was less than 9.3%, but the interviewee observes that this growth is also extremely fast. Apparently it was supported by several factors.

“Since the beginning of 2020, the monthly minimum wage has risen significantly, changes in the remuneration system in the transport sector, which have caused a rise in wages at double-digit rates in these activities in the statistics.

In addition, the median salary was increased due to the fact that in the face of a pandemic, companies forced to reduce the number of employees are trying to retain qualified specialists and reduce the number of less qualified and unskilled workers. During the quarantine, the number of employees coming from third countries decreased, and to attract locals to work, companies had to offer more attractive salaries ”, says the interlocutor.

Whose wallets were the most affected by the pandemic

Economist Ž. Maurice says that in 2020, the income of the self-employed or freelancers and lost their jobs was the ones that decreased the most. It points out that the income of retirees or public sector employees should not have decreased.

Despite rising median wages, the survey results don’t surprise her. I. Genytė-Pikčienė points out that the pandemic had a negative impact on the income of the population which had to drop during the quarantine, as it decreased during downtime. According to the Ministry of Social Security and Labor, those people until December 17. it was more than 214,000, or nearly 16 percent. from every worker. During the quarantine period, the income of the self-employed in the affected activities also decreased, which was replaced by equal monthly benefits for all.

On top of all this, it is unfortunate, but Lithuania has not managed to control the growth of unemployment as well as other EU members. The income of those who lost their jobs due to the pandemic also fell ”, adds the economist.

The interlocutor points out that Eurostat According to seasonally adjusted data, the increase in unemployment in Lithuania was the highest among members of the European Union (EU), and in October, compared to January, it reached 4.3 percent. point. The unemployment rate in Lithuania reached 10.4 percent in October. and it was also one of the highest in the EU: Lithuania ranked fourth, only surpassed by Cyprus, Greece and Spain.

„Eurostat publishes the unemployment rate estimated from the survey data, which differs significantly from the registered unemployment monitored by the Employment Service. This last indicator was increased, in addition to objective factors, by the unfavorable employment policy paid by the government in the summer, which encouraged all those interested to register as unemployed with the money distributed. Then Eurostat Under these circumstances, the unemployment rate estimated according to data from labor force surveys more accurately describes the real situation on the labor market ”, highlights I. Genytė-Pikčienė.

A stricter quarantine can affect the income of the population

According to the economist, the strict quarantine conditions will also affect the income of the population.

The quarantine freezes part of the sectors and the companies that operate in them, so depending on the accumulated financial pillows, the opportunities and the ability to adapt and work remotely, the efficiency and effectiveness of state aid will determine whether jobs will be preserved or wages will not be cut. would remain.

The quarantine also affects other segments of the economy oriented to the domestic market, since population mobility and the appetite for consumption have decreased, so the commercial results will be more modest and in such uncertain circumstances companies are more cautious with the prospects and opportunities to motivate employees, ”says INVL’s chief economist.

Predict 4-5 percent. wage growth in 2021

According to the interlocutor, this year the growth of salaries is based on government decisions in the budget: an increase in the monthly minimum wage, an increase in the basic salary, which will affect the salaries of public servants, civil servants, politicians and judges, salaries additional for healthcare workers. .

At that time, in the private sector, he said, it will be a year of recovery and wage growth will be slower, recovering only in the second half of the year. I. Genytė-Pikčienė expects wages to grow by 4% on average this year.

At that time, the economist Ž. Maurice believes that salary growth this year will be quite significant, although not as high as in 2020. He predicts that in 2021. Salaries in the country can grow more than 5% on average.

“As soon as the economy returns to normal, which will probably happen before the summer, we will feel a huge shortage of workers. Also, a significant increase in the minimum wage alone will have a significant impact on growth of 2%. “I don’t think the bigger companies cut wages. So I would say 5 percent. The growth is quite real,” he says.

Market research and public opinion company Spinter tyrimai conducted a public opinion poll from November 18 to 29, 2020, commissioned by the Delfi news portal. The study included residents between the ages of 18 and 75.

Combined survey method used: 50 percent. by telephone survey, 50 percent. The Internet. In the case of a face-to-face interview, the interview is conducted by a professional interviewer. Make a conversation with the interviewee according to the prepared questions, recording the answers in a questionnaire. In the online survey, the respondent is sent a link to the survey, which the respondent independently completes at a time that is convenient for them. The link is unique, that is, the questionnaire cannot be completed more than once.

The study surveyed 1,005 respondents. The distribution of study participants by sex, age and place of residence is proportional to the distribution of the population in Lithuania. The error of the research results is 3.1 percent.