Labor market remains tight in CEE

Labor market remains tight in the region. Yesterday, Slovakia released unemployment rate for April that remained at 4.8%; a historically record low figure. In other countries we also see low unemployment rates. Today we look at the region how it stands compared to other European countries with compensation growth and unemployment rate. In most of the region, the nominal growth of compensations remained double-digit in 2024 while inflation already eased. The highest nominal growth of employees compensations was recorded in Croatia and Romania (18%) and in Hungary and Poland (around 12%). This is visibly above the EU average. It must be noted that the inflation rate was also higher in the region compared to the rest of Europe. Nevertheless, the real wage gains were quite substantial last year. Only Czechia and Slovakia experienced weaker nominal growth of compensations in 2024. AT the same time unemployment rate remains below the EU average in all CEE countries. That may also sustain higher wage pressure.