SSE.LT

Today Lithuanian Central Bank reported first ever year-on-year drop in residents wages. Gross wage declined 2.9% in the second quarter of 2009. Compared to the first quarter average wage rate declined 1%, average number of employees fell 4.1%. Thus, real corporate spending on wages contracted 5.1% in the quarter.

Employees in financial, mining and construction sectors experienced steepest declines in salaries. Wages in the sectors declined 4.9%, 10.6% and 22.4% respectively. On the opposite, teachers earned 12.9% more in 2q 2009 than during the same period a year ago.

Despite that was the first quarter of wage decline, wage growth has been falling for 5 consecutive quarters.

Average 2q 2009 monthly earnings. Respective quarter of the pervious year = 100

Major GDP driving sectors, construction and financials, experience steepest declines in earnings, indicating bottom is still not reached.

Average 2q 2009 gross monthly earnings in LTL