Central Bank: rising salaries of public sector employees may widen the gap with productivity dynamics
The round of wage growth launched by the budget sector may lead to a widening gap between the dynamics of income and labor productivity. Analysts of the Bank of Russia saw such risks in increasing income – about this reports press service of the regulator.
As part of the March meeting of the Board of Directors of the Central Bank on monetary policy (MP), the situation on the labor market in Russia was discussed. As the meeting participants noted, an increase in public sector wages could stimulate wage growth in other sectors of the economy due to competition for personnel in conditions of low unemployment. This trend can lead to labor productivity falling behind the amount offered for the job.
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“Significant investments and, as a result, the creation of new capacities, increased productivity, as well as the use of new technologies could lead to increased potential. Output gap estimates remain a significant factor of uncertainty,” the regulator said.
Also during the meeting, analysts said that a significant risk for the ruble in 2024 will be changes in prices and physical volumes of exports. The influence of fluctuations in oil prices on budget revenues helps to smooth out the dynamics of the ruble exchange rate, but this mechanism is powerless in relation to prices for other export goods, the press service of the Central Bank emphasized.
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