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Moderate wage growth


In the first two months of 2011 the average gross monthly wage in the enterprise sector rose by 4.3% y-o-y, a real-terms increase of 0.9% y-o-y. Though business surveys show that most firms do not plan to increase wages above inflation, we expect a certain acceleration of wage growth in the course of the year, due to a combination of stronger labour demand, firmer economic recovery, and low reference base. Other factors likely to put an upward pressure on wages are accelerating inflation and the full opening of the German labour market to Polish workers effective from 1 May. With this in mind, we forecast that in 2011 as a whole the average gross monthly wage in the enterprise sector will rise by about 5-6% in nominal terms.

Paweł Sionko
Construction Market Analyst, PMR

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