Analysts: Labour Market Could Gradually Loosen Up in 2019

(Stock photo by TASR)

Bratislava, January 7 (TASR) – According to analysts, the shortage of labour should be among the main topics even in 2019, TASR learnt on Monday.

An expected slowdown in economic growth will gradually mitigate employers’ demand for labour, said the analysts. “The labour market will loosen up, especially in the east and south of central Slovakia, while mild (temporary) growth in unemployment can’t be excluded in 2020,” assumes analyst from UniCredit Bank Czech Republic and Slovakia Lubomir Korsnak, adding that the west of the country will still experience a lack of available labour, which, according to him, employers will resolve partly by importing labour from abroad. The number of foreigners working in Slovakia could gradually stabilise this year and especially next year, said Korsnak.

The analysts think that the shortage of labour should force salaries to grow. Analyst from Postova banka Lucia Dovalova said that nominal growth in salaries could exceed 6 percent and thus grow at approximately the same rate as in 2018. According to Korsnak, the announced salary increase of 10 percent in the public sector as of January 2019 should accelerate growth to 7 percent.

“Salaries will be forced up especially in sectors that feel a lack of qualified labour, said Dovalova, adding that real salaries should also grow in 2019, albeit at a slower rate than nominal ones.