Slovak wage growth slows in February 2025 as employment declines in several sectors

The Statistical Office of the Slovak Republic reports that although average monthly wages increased across all monitored sectors in February 2025, the pace of growth slowed and failed to keep up with inflation in four sectors. Real wage growth was recorded in six out of ten sectors, while employment continued to decline in half of them.

In nominal terms, average wages rose year-on-year in all ten sectors. The highest increase was observed in the information and communication sector at 12.8%, while the lowest was in the sale and repair of motor vehicles, which rose by 1.9%.

When adjusted for inflation, real wages increased in six sectors. The information and communication sector again led with an 8.7% rise. Other notable real increases were seen in accommodation and food and beverage service activities, with growth between 4% and 5%. Industry recorded the lowest real wage growth at 1%. Meanwhile, real wages declined in transportation and storage, selected market services, wholesale, and the sale and repair of vehicles, with decreases ranging from 0.7% to 1.8%.

In the cumulative period of January and February 2025, nominal wages grew in all monitored sectors. Real wages were higher in nine of them, led by information and communication with a 5.5% increase. Selected market services remained the only sector with a year-on-year decrease in real wages, down by 0.6%.

Employment data for February showed an increase in only three sectors: accommodation, retail trade, and selected market services. Employment dropped in five sectors, with the most significant decline in industry at 1.9% and the smallest in information and communication at 1.2%. Employment remained stable in construction and in the sale and repair of motor vehicles.

For the first two months of 2025, employment figures showed a similar trend. Three sectors recorded year-on-year increases, six experienced declines, and one remained unchanged. The most notable rise was in the accommodation sector, which saw a 3.3% increase in employment, while industry reported the largest drop at 2.1%.

The data suggests a cooling in wage dynamics and ongoing challenges in employment across several key sectors of the Slovak economy.

Source: SOSR