Wage growth slows in February 2025, employment declines in several sectors

Wages in Slovakia continued to rise in February 2025 across all key economic sectors monitored monthly by the Statistical Office of the Slovak Republic. However, the pace of growth slowed significantly and, in four sectors, failed to keep up with inflation. Employment levels also showed mixed results, increasing in only three sectors while declining in five.

Nominal wages increased year-on-year in all ten sectors, with growth rates ranging from 1.9% in the sale and repair of motor vehicles to 12.8% in the information and communication sector. When adjusted for inflation, real wages rose in six sectors. The highest increase, at 8.7%, was again recorded in information and communication. The lowest real wage growth, just 1%, occurred in industry. Real wage increases between 4% and 5% were seen in the accommodation sector and in food and beverage service activities. In contrast, transportation and storage, selected market services, wholesale, and vehicle-related services saw real wages decline by between 0.7% and 1.8% compared to the same period last year.

Data for the first two months of 2025 show that nominal wages rose year-on-year across all monitored sectors, while real wages increased in nine of them. The highest real wage growth for the period was 5.5% in information and communication, while the only decline was a 0.6% drop in selected market services.

Employment trends in February were mixed. Year-on-year increases were reported in accommodation, retail trade, and selected market services. At the same time, employment declined in five sectors, with the largest drop of 1.9% in industry and the smallest, 1.2%, in information and communication. Employment remained unchanged in construction and in the sale and repair of motor vehicles.

Over the combined period of January and February 2025, employment was higher year-on-year in three sectors, lower in six, and stable in one. The range of change varied from a 2.1% decrease in industry to a 3.3% increase in accommodation.

The data suggests that while wages continue to grow in nominal terms, inflation is eroding gains in several areas. Employment trends remain uneven, with limited growth confined to specific service-based sectors.

Source: SOSR