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Every third employer plans to increase wages this year

Каждый третий работодатель планирует в этом году повысить зарплаты

Economists' wage forecasts for this year are particularly positive: growth will be around 7-8%. This is also confirmed by the mood of the entrepreneurs themselves – according to a survey conducted by Luminor Bank, every third small and medium-sized enterprise plans to increase salaries."The economy is gradually recovering, and issues related to personnel are becoming one of the main priorities for Latvian companies. Of those Latvian small and medium-sized enterprises that plan to expand this year, 29% indicated that they are thinking of hiring new employees. This, however, is the lowest figure compared to neighboring countries – in Estonia, 31% of companies planning to expand will hire new employees, and in Lithuania – 40%,” comments Kerli Vares, head of Luminor in Latvia, commenting on the survey data. When assessing areas where available funds could be invested, small and medium-sized enterprises most often highlighted increasing employee salaries – this answer was given by 30% of Latvian, 36% of Lithuanian and 44% of Estonian respondents. This is in line with the forecasts of economists, who pointed to a significant increase in wages this year – by about 7-8%. This is a good signal for all employed people: after the difficult economic conditions of recent years, this year may finally be the year of gradual recovery. “By raising wages in line with labor market trends and continually improving working conditions, companies will not only have an easier time retaining their current experienced employees, but will also have a better chance of attracting new talent. This in turn means that when demand for goods and services begins grow, the company will not face a shortage of personnel,” adds Curly Vares. It is important to note that in all Baltic countries, the surveyed employers also stated that they plan to invest in employee training, considering it very important for the development of the company. Every fifth employer surveyed plans to spend money on these purposes. The same percentage of respondents who plan to invest in innovation and new technologies. By the way, how Latvia compares to the rest of Europe in terms of salaries can be found in the article Average salary in European countries: where does Latvia rank?

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