Real earnings increased by 4.8 percent in November, representing a continuation of the sustained increase in the purchasing power of salaries. In addition, the number of people in employment within the private sector at enterprises who employ 5 or more people increased by over 20 thousand in the space of a single year.

According to the latest statistics from the Central Statistical Office (KSH), average gross earnings within the national economy increased by 3.8 percent in the period January-November 2013 compared to the similar period in the previous year, while net average earnings grew by 5.3 percent. Taking into account the low level of inflation of 1.9 percent, a 3.3 percent increase in real wages was achieved in the period examined, which is also a result of the reduction in public utility charges. Accordingly, the continuous increase in real wages further contributes to increasing private consumption, and through this to further economic growth.

Average gross monthly earnings for people employed full time were HUF 229,700 for the period January-November 2013. People employed in the private sector earned an average of HUF 240,400, while those employed in the public sector, excluding those involved in public works programmes, earned an average monthly wage of HUF 227,200. The average wage of people employed in public works programmes was HUF 76,900.

Average earnings within the private sector increased by 5.5 percent, while the average increase within the public sector - excluding public works employees - was 7.1 percent during the first eleven months of last year. Real wages continued to increase in both sectors while at a national economy level, a 3.3 percent increase in real earnings was characteristic of the period January-November 2013. Earnings were worth 4.8 percent more in real terms in comparison to the low level of inflation of 0.9% measured in November. Average net earnings calculated without family benefits increased once again to HUF 162,500 in November at a national economy level, representing an increase of 5.7 percent compared to the corresponding data in the previous year.

The increase in the number of jobs and the continuous rise in real earnings are having a favourable effect in stabilising the income status of the population and contribute to an increase in internal consumer demand. Based on previously published industrial and employment data that exceeded expectations, the Government's goal of achieving permanent economic growth within the Hungarian economy is a realistic one.

(Ministry for National Economy)