WARSAW, May 19 (Reuters) - Polish corporate sector wages grew less than expected in April but employment stabilised after falling for 14 consecutive months, bringing hope that improvement on the labour market will prove robust.
Wages grew 3.2 percent year-on-year in April to 3,399 zlotys ($1,012) per month, less than 4.0 forecast in a Reuters poll. Corporate employment was flat on an annual basis and rose 0.3 percent in monthly terms.
'The fact that there are more jobs created than we expected shows that companies are re-hiring... and this is not only connected with seasonal changes,' said Marta Petka-Zagajewska, economist at Raiffeisen Bank Polska.
Inflation in April stood at 2.4 percent, so wages rose also in real terms. This trend may continue, some analysts said, pointing to the expected easing of inflation in the coming months.
Real wage increases may prove key for the economy as it helps internal demand. Relatively strong demand from the population of 38 million was one reason Poland avoided recession in 2009, the only European Union country to do so.
In March the unemployment rate inched down to 12.9 perecent but Poland has traditionally suffered from low labour participation, and the jobless rate stood at 11-15 percent even in 2007 when the economy expanded by 6.7 percent.
Analysts expect Poland's economy to expand by 3.0 percent in 2010 and unemployment to fall to 12.4 percent in December this year.
(Reporting by Adrian Krajewski, writing by Dagmara Leszkowicz and Kuba Jaworowski) ($1=3.357 Zloty) Keywords: POLAND WAGES/ (jakub.jaworowski@thomsonreuters.com, RM: jakub.jaworowski.reuters.com@reuters.net, tel +48 22 653 9723) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Wages grew 3.2 percent year-on-year in April to 3,399 zlotys ($1,012) per month, less than 4.0 forecast in a Reuters poll. Corporate employment was flat on an annual basis and rose 0.3 percent in monthly terms.
'The fact that there are more jobs created than we expected shows that companies are re-hiring... and this is not only connected with seasonal changes,' said Marta Petka-Zagajewska, economist at Raiffeisen Bank Polska.
Inflation in April stood at 2.4 percent, so wages rose also in real terms. This trend may continue, some analysts said, pointing to the expected easing of inflation in the coming months.
Real wage increases may prove key for the economy as it helps internal demand. Relatively strong demand from the population of 38 million was one reason Poland avoided recession in 2009, the only European Union country to do so.
In March the unemployment rate inched down to 12.9 perecent but Poland has traditionally suffered from low labour participation, and the jobless rate stood at 11-15 percent even in 2007 when the economy expanded by 6.7 percent.
Analysts expect Poland's economy to expand by 3.0 percent in 2010 and unemployment to fall to 12.4 percent in December this year.
(Reporting by Adrian Krajewski, writing by Dagmara Leszkowicz and Kuba Jaworowski) ($1=3.357 Zloty) Keywords: POLAND WAGES/ (jakub.jaworowski@thomsonreuters.com, RM: jakub.jaworowski.reuters.com@reuters.net, tel +48 22 653 9723) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.