Excluding the impact of fostered workers, who earned just 78,544 forints in February, gross wages were up by 2.6% at 245,357 forints.

In the business sector, which includes state-owned companies, gross wages were up by 3.5% at 249,096 forints. In the public sector, gross wages increased by 2.2% to 206,086 forints.

The number of employed in Hungary increased by 1.9% in the year to February, to 2,856,000. The number included 168,900 full-time fostered workers. The number employed in the business sector was up by 3.6% at 1,902,500. The number in the public sector fell by 1.5% to 849,500.

TakarékBank analyst Gergely Suppán said wages were expected to rise by around 4% this year as inflation stands at about zero. He added that the increase in demand for labour in the business sector was an encouraging sign.

K&H Bank chief analyst Dávid Németh said the February wage growth was in line with expectations. He forecast real wage growth at 3.5% for this year.

Sándor Czomba, the state secretary in charge of the labour market, said gross and real wages have been on a growth path for months with inflation at minus 1.2%. Czomba told public news channel M1 that economic growth has been the prime benefit to wages.

He added that businesses with five or more employees in the private sector made 66,000 more hires in February compared to February of last year.

Source www.hungarymatters.hu

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