Central Bank of Armenia expects median nominal wage to grow by 7 percent in 2011 April-December

ARKA, 20.05.2011

Median nominal wage in Armenia is set to grow by 7 percent in 2011 April-December, the Central Bank of Armenia (CBA) has projected in its Program of Money and Credit Policy for the second quarter of 2011.

The report says wage rise is expected both in public and private sectors due to rebounding economy. It says wage rise dynamic will be maintained through the first quarter of 2012. It also predicts a growing demand for labor force in industrial and services sectors on the back of lasting economic expansion. This is supposed in turn to result in reduced unemployment level which the Central Bank says may drop by 0.5% in 2011 to 6.6%.

The unemployment level will continue to fall in the first quarter of 2012 to 6.4% to near the pre-crisis level. The report says also developments at the labor market in 2011 April-December time span will bring about weak inflationary pressure on the consumer market (inflation may rise by 0.2 p.p.) as the cost of a work force unit in the private sector may rise by 3%, however, the report says the anticipated inflationary pressures at the labor market will be weaker if compared to the second half of 2010. The pressure is expected to weaken further in the first quarter of 2012 due to slower growth of the cost of one labor force unit in 2011. -0-