Slovak wages outpaced inflation across sectors in 2024, employment rose in key industries

Early data confirms that wages in the Czech economy grew faster than inflation across all ten monitored sectors in 2024, providing real income gains for workers. The retail trade and transport and storage sectors saw the highest year-on-year improvements in earnings. Employment increased in six out of ten sectors, with selected market services experiencing the most growth, while industry faced the steepest decline.

December 2024 Wage and Employment Trends

The average nominal monthly wage in December 2024 was higher across all monitored sectors compared to the previous year. However, the rate of wage growth slowed in most industries compared to the prior month. The most significant wage increases, including double-digit growth, were recorded in the sale and repair of motor vehicles. Wages in industry and retail, both sectors with a large workforce, also rose significantly, exceeding 7%.

After adjusting for inflation, real wages increased in eight out of ten sectors. The strongest real wage growth was in sales and vehicle repair, with an 8% increase, followed by retail, where real earnings rose by more than 5%. The only exceptions to this upward trend were wholesale and selected market services, where employees experienced a real wage decline of up to 0.9% year-on-year.

Employment trends in December mirrored the mixed results seen in wages. In a year-on-year comparison, five out of ten sectors recorded an increase in employment. The number of employees grew by 5% in selected market services and by 2–3% in retail, information and communication, construction, and accommodation. However, industry employment fell by 1.6%, and declines were also observed in wholesale, food and beverage service activities, and motor vehicle sales and repairs.

Full-Year 2024 Wage and Employment Developments

For the entirety of 2024, nominal and real wages increased across all ten monitored sectors. Retail and transport and storage saw the fastest nominal wage growth, both exceeding 9%. Average monthly wages reached EUR 1,245 in retail and EUR 1,399 in transport and storage. Industry wages rose by more than 8% to EUR 1,641, while earnings in motor vehicle sales and repairs climbed to EUR 1,522. Food and beverage service workers also saw significant wage growth, with average earnings rising to EUR 758.

Real wages, adjusted for inflation, grew in all sectors, ranging from a 1.3% increase in selected market services to a substantial 6.5% jump in retail. The strongest real wage increases, above 5%, were observed in transportation and storage, industry, vehicle sales and repairs, and food and beverage service activities.

Employment patterns in 2024 showed positive growth in six of the ten monitored sectors. The fastest expansion was recorded in selected market services, where employment rose by 4.8%. Accommodation, information and communication, and construction also posted growth of at least 2% year-on-year. However, industry suffered the largest employment decline, down 2.2%, followed by wholesale (-1%), transport and storage (-0.6%), and food and beverage service activities (-0.2%).

Economic Outlook and Sectoral Trends

The data, derived from preliminary monthly enterprise surveys, indicates a positive trajectory for wage growth in the Czech economy, as most sectors managed to outpace inflation in 2024. The resilience of employment in key service sectors and construction contrasts with the struggles faced by industry and wholesale trade.

Despite some areas of decline, the overall employment and wage growth patterns suggest a strengthening labor market, with workers in retail, transportation, and industrial sectors experiencing the most substantial financial gains. Whether this trend continues into 2025 will depend on macroeconomic conditions and inflationary pressures in the coming months.

Source: Statistical Office of the Slovakia