GRANT
journal
ISSN 1805-062X, 1805-0638 (online), ETTN 072-11-00002-09-4
EUROPEAN GRANT PROJECTS | RESULTS | RESEARCH & DEVELOPMENT | SCIENCE
8% is very dangerous. This may cause a major problem, mainly in
the poorer parts of Slovakia, which have a continuous problem with
unemployment. According to B. Ondruš, state secretary from the
Ministry of Labour, Social Affairs and Family of the Slovak
Republic, low wages chase people from specific sectors, such as the
tourism industry or agriculture, and for a minimum wage today
people don’t want to go to work. He noted that it’s not possible to
eliminate jobs by raising the minimum wage, because employers are
unable, even with low-paying jobs, to find workers. B. Kollár, a
Member of the National Council of the Slovak Republic (TASR,
2017), says that regulation and decisions of the state, for example,
high prices for energy, prevents employers from increasing wages.
According to several economists, increasing minimum wages does
not cause a problem for wealthy regions, such as in the west of the
country, because companies almost never pay minimum wages here.
However, raising the minimum wage by more than 8% can cause
problems for companies in the east of the country, areas with high
unemployment. Small businesses in particular will have their labour
costs increased (Kollárová, 2018).
3.
WAGE IN THE INDIVIDUAL SECTORS OF THE
ECONOMY
One of the criteria for monitoring the development of average wages
is monitoring by individual economic activities (sectors). Until
2008, individual sectors were listed in the Statistical Branch
Classification of Economic Activities (OKEČ). Gradually, the
Statistical Office of the Slovak Republic has moved to a revised
classification of sectors, SK NACE Rev. 2, which is derived from
the European version of NACE Rev. 2. The reason for the
classification revision was to provide comparable of economic
statistics on both European and international levels. This also means
taking into account technological and structural changes in the
economy. Since this classification has been used since 2008, we
decided to monitor the development of the average wage by
individual sections of the classification from that year (SO SR,
2007).
The following Table 5 shows how the average wages for individual
sectors of the Slovak economy changed from 2008-2018.
Differences in the amount of average wages by sectors were to a
great measure influenced by the different demand for employees in
selected economic activities. Employees in the information and
communication sectors earned the highest wages in 2008 (€1689).
Employees in the financial and insurance sectors, those working in
the supply of electricity, gas, steam and cooled air as well as
professional, scientific and technical activities, earned more than
€1000 on average. For the entire monitored period, the lowest
average wages, from €540 to €750, were in the accommodation and
dining services sectors. After 2008, the financial crisis manifested
itself in certain sectors as a decline of average wages. After recovery
of the economy, from 2010 on, average monthly wages began to
grow in every sector. In the 3rd quarter of 2018 we can see that the
highest wages were maintained in the same sectors as at the
beginning of the reporting period, namely information and
communication, suppliers of electricity, gas, steam and cooled air
supply, as well as financial and insurance activities. The lowest
wage remained in accommodation and dining services and
administrative and support services, as it was at the beginning of the
monitored period.
According to Zuzana Rumiz, CEO of the ManpowerGroup in
Slovakia, finding suitable candidates to fill jobs, which leads to
wage growth and strengthens the need for investment into retraining
and employee development, remains a great challenge. According to
a survey by the Manpower Group in 2019, employers in the
processing industry are planning to take on the most employees,
with an Index of + 20%. Favourable labour market conditions are
also available for the finance, insurance, real estate and other
business services sectors, with an Index of + 18%; to the transport,
storage and communications sectors with + 14%; to the agriculture,
hunting, forestry and fishing branches with + 11%; and to
construction sector at + 11%. Employers in production and
distribution of electricity, gas and water report subdued recruitment
activities, with an index of 0%. Compared to the previous quarter, in
2019, there is significant index growth in the agriculture, hunting,
forestry and fisheries sectors by 21 percentage points (p.p). The
construction and accommodation and dining sectors report growth
by 11 p.p. A decline in the index appeared mainly in the production
and distribution of electricity, gas and water — by 4 p.p. In a year-
on-year comparison, the index dropped significantly in agriculture,
hunting, forestry and fisheries sectors (by 16 p.p.) and in the mining
sector (by 8 p.p.). Recruiting plans have been strengthened mainly
in the construction sector (by 6 p.p.). On the basis of business size,
the largest companies — those with more than 250 employees —
have the most positive outlook, with an index of + 26%. Medium-
sized businesses expect a stable recruitment environment with an
Index of + 13%, and also small businesses, which report an index of
+ 12%. Micro-enterprises — those with fewer than 10 employees —
are the most cautious in hiring new workers, at + 6%.
According to a survey by the Grafton Slovakia agency (2018), the
reasons for the increased growth in wages will be a record-breaking
low unemployment rate and a price battle for workers. The
employment of foreigners will be standard. The role of wages as the
most powerful tool for retaining talent will strengthen. While
companies have thus far tried to attract and maintain employees
more with benefits and improved working conditions, today no other
recourse remains to them than to work with the level of pay.
Table 5 Wage development in individual sectors of the economy,
2008–2018 (€)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
3.Q.
SK total
788
803
828
853
881
891
957
993
1034 1095 1144
Agriculture,
forestry and
fishing
617
587
608
703
727
740
776
815
848
903
990
Total industry
798
780
854
889
911
933
992
1036 1067 1146 1213
Mining and
extraction
836
829
855
937
922
932
986
1030 1107 1117 1156
Industrial
production
765
747
826
867
890
916
974
1021 1054 1135 1195
Supply of
electricity, gas,
steam and cold
air
1240 1306 1393 1366 1385 1396 1475 1534 1613 1672 1826
Water supply,
wastewater
treatment and
drainage, waste
and waste
disposal
services
714
724
779
801
813
824
862
872
889
972
990
Construction
791
807
814
791
835
815
851
881
921
949
1143
Wholesale and
retail trade,
repair of motor
vehicles and
motorcycles
802
799
778
764
808
830
915
938
971
1032 1060
Transport and
storage
744
761
770
793
803
319
364
896
917
996
1036
Accommodation 540
504
509
505
545
557
530
593
617
652
751
Vol. 9, Issue 1
59