Saša Ranđelović, a professor at the Faculty of Economics and the head of the Quarterly Monitor, said that the slowdown in economic trends has also had consequences on the labor market in Serbia, where the adjustment now occurs through the movement of real wages, but not through the movement of employment.
He pointed out that according to the labor force survey, in the first quarter of this year, the employment rate (year-on-year) increased by 1.1 percentage points, while the unemployment rate decreased by 0.8 percent to 10.1 percent.
“The employment rate reached 49.6 percent. The number of registered employees is growing in the private sector, especially in the service sector. Cumulatively, from 2016 to 2023, the number of employees in the public sector decreased by 12,000, while the number of employees in the private sector increased by about 420,000,” he said.
He also emphasized that the “chronic labor shortage” is related to the bad demographic situation and emigration trends, but also that it is a factor that influences employers’ decisions to reduce business activities and not adjust employment, i.e. not to fire workers with preparatory signals.
He reminded that In the first quarter, the average net salary was 83,000 dinars, or about 709 euros, while the median salary was one quarter lower than that.
“On a year-on-year basis, nominal earnings in the first quarter were higher by 1.5 percent, but given that inflation was above that, real earnings decreased by 0.5 percent in the first quarter compared to the first quarter of 2022. Net earnings were 1.5 percent higher compared to the same period last year, while in the public sector they were 4.4 percent lower,” said Ranđelović.
According to Ranđelović, the wage gap between the public and private sectors was further reduced due to inflation in March of 16 percent, although wages were increased by 12 percent in January.
He also pointed out that, after a long time, a decline in real wages can also be observed in the information and communication sector.
Sign up for business updates & specials.
