In a positive turn for the Czech economy, average gross wages have seen a significant increase in the second quarter of this year. According to data released by the Czech Statistical Office (ČSÚ), wages rose by 6.5% year-on-year, reaching 45,854 Czech crowns (approximately $2,060). When adjusted for inflation, this translates to a real increase of 3.9%.
The median wage, representing the middle value of all wages, climbed to 38,529 crowns, marking a 5.8% increase from the previous year. Interestingly, a gender pay gap persists, with men’s median wage at 41,540 crowns compared to women’s 35,565 crowns.
Not all sectors experienced equal growth, however. The healthcare and social care industry saw the highest increase, with wages jumping by approximately 11%. Workers in water supply and waste management also benefited, with a 7.8% rise.
Despite these positive figures, Jitka Erhartová, head of labor statistics at ČSÚ, cautioned that “in some sectors, employees’ wages did not increase in real terms”. This uneven growth highlights the complex nature of economic recovery.
Analysts remain cautiously optimistic about the trend. Miroslav Novák from Akcenta expects real wage growth to continue in the second half of the year, potentially averaging just over 4% for the entire year. However, he notes that in real terms, the average wage is still only at 2018 levels.
As the Czech Republic continues to navigate economic challenges, including high inflation in recent years, this wage growth offers a glimmer of hope for workers across the country. However, with slower growth in the public sector and challenges in industries facing order shortages, the road to full recovery may still be long.