Research

Net Salary/Income Jumped Unexpectedly In Aug 2022

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Algo Research Team

Economics | Nov 08, 2022 | Views: 51

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Key Summary:

  • Average net salary grew +12% YoY in Aug-22, +7.5% inflation adjusted
  • Higher income/salary was seen broadly across industries
  • Unemployment rate rose slightly to 5.86% in Aug-22 vs. 5.83% in Feb-22

Unexpectedly, average net salary/income growth beat our expectation, up +12% YoY (vs. +1% in Feb-22) or +7.5% YoY adjusted to inflation rate. This increase was seen in all industries, notably in mining +11% YoY (vs. +1% in Feb-22), manufacturing +12% YoY (vs. -1% in Feb-22), transportation +22% YoY (vs. +3% in Feb-22) and accommodation +24% YoY (vs. +3% in Feb-22).


We initially expected that the growth would not exceed +5% as, historically, since 2018 net salaries/income also had not increased by more than +5% coupled with a gradual decline in growth outlook, so this number came as a positive surprise. We suspect that since this number includes not only payrolls, but also freelance/contract workers and self-employed then there could higher income associated with these segments instead of the former that relies on salary only. A jumped in transportation and accommodation industries income should also support this notion as many workers are likely self-employed.

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