Share of wages in Slovakia’s GDP rising fast

The share of wages in Slovakia’s GDP rose from 43% in 1995 to 49% last year, the fourth-fastest pace in the EU, an Institute for Financial Policy study found. However, it remains seven points below the EU average; in Czechia, it stands at 51%. The growth is attributed to the expanding share of skilled services such as IT and shared service centers, while industrial employment is declining. A growing reliance on foreign workers, who typically earn less than locals, may put downward pressure on the wage share in the coming years.

(trend.sk)