Average salary during this government’s term increased by 710 kuna – Prime Minister

Prime Minister Andrej Plenković emphasized on Thursday that during his government’s term, the average salary has increased by 710 kuna, to over 6,350 kuna, and significant progress has also been made regarding employment and unemployment.

Reflecting at the beginning of the government session on the latest macroeconomic indicators, Plenković noted that since his government took office, the average salary has risen by 710 kuna. “Thus, from October 2016 to today, the average net salary is higher by 710 kuna,” stated Plenković.

The average net salary paid per employee in legal entities in Croatia for May of this year was 6,352 kuna, which is 1.7 percent higher than a month earlier and 3.4 percent higher than a year earlier, the Croatian Bureau of Statistics (DZS) reported on Wednesday.

“This means we have made significant strides here,” assessed Plenković, also commenting on the latest unemployment data.

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The registered unemployment rate in June was 8.8 percent, and currently, there are 136,889 people unemployed in the country.

“This is one of the lowest absolute numbers probably since 1990, if I am not mistaken, which is more than evident in the tourist season, where numerous employers are looking for workers of various profiles,” said Plenković.

He announced that in preparing for the next season, it will be necessary to timely consult with employers and unions to find the best ways to address this issue in the labor market and possibly see earlier what quotas are needed for foreign workers.

Unemployment rate at a record low

On Wednesday, the DZS announced that in June, there were just over 1.43 million employed in Croatia, which is an increase of 24,576 persons or 1.7 percent compared to a month earlier, while the unemployment rate fell to a record low level of 8.8 percent.

Data from the Croatian Employment Service (HZZ) shows that at the end of June, there were 138,383 unemployed, which is about 3,513 persons or 2.5 percent less than a month earlier.

>>> Number of employed increased by 24.5 thousand, unemployment rate at a record 8.8 percent

“In June, the registered unemployment rate slipped below 9 percent for the first time and thus reached a historically low level, which is in line with seasonal trends in the labor market,” analysts from Raiffeisenbank Austria stated on Thursday in a commentary on the DZS report.

This is, they add, the fifth consecutive month that the unemployment rate has fallen.

“The reduction in the unemployment rate is primarily the result of a decrease in the number of unemployed to the lowest recorded level, 138,383, which represents a decline both on a monthly and annual basis,” the RBA analysts noted.