{"id":18006,"date":"2024-03-14T21:48:00","date_gmt":"2024-03-14T20:48:00","guid":{"rendered":"https:\/\/altax.al\/?p=18006"},"modified":"2024-03-14T22:16:23","modified_gmt":"2024-03-14T21:16:23","slug":"average-salary-indicators-in-2023-in-the-public-and-private-sector-and-the-need-for-productivity","status":"publish","type":"post","link":"https:\/\/altax.al\/en\/average-salary-indicators-in-2023-in-the-public-and-private-sector-and-the-need-for-productivity\/","title":{"rendered":"Average salary indicators in 2023 in the public and private sector and the need for productivity"},"content":{"rendered":"

In the latest publication of INSTAT on average salaries in the public and private sector in the fourth quarter of 2023<\/a>, it can be seen that the increase in salaries is with a continuous increase, as it happened in the two previous quarters of 2023.<\/p>\n

As can be seen in the table below, there is a greater increase in the public sector, where the average salary for an employee in the average of 2022 is 74,450 ALL\/month and in the quarters of 2023, except for the first quarter, there is an increase that reaches to 18% in the fourth quarter of 2023.<\/p>\n

Whereas, in the private sector, the indicator of the average salary for an employee for all sectors of the economy is ALL 62,198\/month in the average of 2022. In the four quarters after 2022, there is also a decrease in the first quarter of 2023 and a growth peaking at 11.6% in the fourth quarter of 2023.<\/p>\n

\n\n\n\n\n\n\n\n
The average level of public and private salaries<\/td>\n2022<\/td>\nTR1<\/td>\nTR2<\/td>\nTR3<\/td>\nTR4<\/td>\n<\/tr>\n
For a salaried employee in the state sector<\/td>\n74 450<\/td>\n73 205<\/td>\n82 207<\/td>\n84 318<\/td>\n87 864<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n-1,67%<\/em><\/td>\n10,42%<\/em><\/td>\n13,25%<\/em><\/td>\n18,02%<\/em><\/td>\n<\/tr>\n
For a salaried employee in the private sector<\/td>\n62 198<\/td>\n60 943<\/td>\n65 901<\/td>\n65 975<\/td>\n69 400<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n-2,02%<\/em><\/td>\n5,95%<\/em><\/td>\n6,07%<\/em><\/td>\n11,58%<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

In the comparison of average salaries between the public and private sectors, it is observed that the increase in the public sector is at least 6.4% higher. But, if we extend the comparison for two years in a row, 2022 and 2023, as analyzed by ALTAX for the year 2022 average salary<\/a>, the average salary increase in the public sector is only 1.9% and in the private sector it is 10.2%.<\/p>\n

In an extension of the comparative analysis for these two years, it is understood that the salary increase in the private sector is 21.8%, while the increase in the public sector is 19.92%. From these two indicators, it can be seen that the salary increase has an upward dynamic for salaries both in the private sector, but also in the public sector.<\/p>\n

But, while in the public sector the salary increase is by government decision and there is a much higher level of marketing due to public appearances and more focused debates and analyses, in fact it has not happened that the same attention is paid to the dynamics of private sector wages.<\/p>\n

This upward dynamics of private sector salaries can be seen in detail in the table below.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Economic activity according to NVE Rev2<\/td>\n2022<\/td>\n2023<\/td>\n<\/tr>\n
Yearly<\/td>\nTr.1<\/td>\nTr.2<\/td>\nTr.3<\/td>\nTr.4<\/td>\n<\/tr>\n
Agriculture, forestry and fishing<\/td>\n40 531<\/td>\n43 903<\/td>\n47 068<\/td>\n47 648<\/td>\n49 140<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n8,32%<\/em><\/td>\n16,13%<\/em><\/td>\n17,56%<\/em><\/td>\n21,24%<\/em><\/td>\n<\/tr>\n
Industry<\/td>\n53 645<\/td>\n57 720<\/td>\n61 117<\/td>\n61 570<\/td>\n64 381<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n7,60%<\/em><\/td>\n13,93%<\/em><\/td>\n14,77%<\/em><\/td>\n20,01%<\/em><\/td>\n<\/tr>\n
Construction<\/td>\n48 820<\/td>\n51 465<\/td>\n56 117<\/td>\n57 080<\/td>\n58 367<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n5,42%<\/em><\/td>\n14,95%<\/em><\/td>\n16,92%<\/em><\/td>\n19,55%<\/em><\/td>\n<\/tr>\n
Trade; transportation; accommodation and food service activities<\/td>\n49 574<\/td>\n52 436<\/td>\n56 758<\/td>\n57 328<\/td>\n60 779<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n5,77%<\/em><\/td>\n14,49%<\/em><\/td>\n15,64%<\/em><\/td>\n22,60%<\/em><\/td>\n<\/tr>\n
Information and communication<\/td>\n98 943<\/td>\n103 215<\/td>\n112 114<\/td>\n105 585<\/td>\n114 761<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n4,32%<\/em><\/td>\n13,31%<\/em><\/td>\n6,71%<\/em><\/td>\n15,99%<\/em><\/td>\n<\/tr>\n
Financial and insurance activities<\/td>\n126 777<\/td>\n119 206<\/td>\n149 091<\/td>\n132 686<\/td>\n148 597<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n-5,97%<\/em><\/td>\n17,60%<\/em><\/td>\n4,66%<\/em><\/td>\n17,21%<\/em><\/td>\n<\/tr>\n
Real estate, scientific, professional, activities etc.<\/td>\n69 115<\/td>\n72 662<\/td>\n76 444<\/td>\n79 300<\/td>\n82 630<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n5,13%<\/em><\/td>\n10,60%<\/em><\/td>\n14,74%<\/em><\/td>\n19,55%<\/em><\/td>\n<\/tr>\n
Public administration<\/td>\n70 796<\/td>\n73 201<\/td>\n82 319<\/td>\n84 992<\/td>\n87 249<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n3,40%<\/em><\/td>\n16,28%<\/em><\/td>\n20,05%<\/em><\/td>\n23,24%<\/em><\/td>\n<\/tr>\n
Culture, art, crafts, etc.<\/td>\n65 178<\/td>\n66 332<\/td>\n71 747<\/td>\n72 661<\/td>\n76 410<\/td>\n<\/tr>\n
Change between the quarter and 2022<\/em><\/td>\n<\/td>\n1,77%<\/em><\/td>\n10,08%<\/em><\/td>\n11,48%<\/em><\/td>\n17,23%<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

From all the sectors summarized in groups of activities in the table, it can be seen that the biggest increase with 23.2%, except for public administration, which has in this group all the state administration, keeps the activities included in tourism and trade with an increase of 22.6%.<\/p>\n

Likewise, all other sectors have double-digit growth, where agriculture records an increase in the fourth quarter of 2023 by 21.2%. But the construction and real estate sector also saw further growth with 19.6%.<\/p>\n

What is observed in all these salary increases for the sectors is the lack of coordination of the government’s employment policies and the needs of the private sector for support during periods of the year and qualified employees.<\/p>\n

In the analysis of employment and salary trends in the activities involved in tourism, a support for the employees of this sector from the government in the periods outside the traditional tourist season during summer and autumn is seen as necessary. The policy that would be valid to maintain a professional workforce in every season<\/a> should be looked at carefully since the main interest for the labor market, but also for this sector, is to keep the employees of this sector connected to the workplace. This support policy also affects the tendency to leave the workplace or even abroad.<\/p>\n

In terms of the problems that arise from an increase in wages without being accompanied<\/a> by an increase in productivity, it can lead to a significant increase in costs for the private sector, as well as the public sector. The private sector would also be affected by the decrease in productivity, from the already increasing demands of new employees and those who are part of the market, since this increase in costs does not have the valuable product to expand the circulation of businesses, but also the expansion of the market theirs. The growth of the market for them is also related to other economic reform policies, as well as those related to the problems dictated by the inappropriate structure of the Albanian market dominated by small and self-employed businesses, where the opportunity for growth is also challenged by systemic informality.<\/p>\n

In the public sector, after the salary increase with a lack of presentation to the public of a performance and productivity analysis, it is seen that there is an urgent need to reform the administration based strictly on the feasibility analysis of each main institution and mainly at both levels of governance.<\/p>\n

Further, we posit the need for an analysis that should come alongside wage increases to plan in medium-term budget programs for declining civil service expenditures using a well-designed pay-for-performance scheme. An analysis in the service of reforming the public administration can also initiate decision-making for the general reduction of the civil service. In other words, a pay-for-performance scheme can help get the same amount of services from fewer employees, even more so in conditions where the digitalization of public services is at advanced levels like no other country in the Balkan region.<\/p>\n

Faced with a perception that the government is too costly for taxpayers to continue funding with the same approach, this moment in 2024 is a major motivation for the implementation of performance-based pay for administration.<\/p>\n","protected":false},"excerpt":{"rendered":"

In the latest publication of INSTAT on average salaries in the public and private sector in the fourth quarter of 2023, it can be seen that the increase in salaries […]<\/p>\n","protected":false},"author":2,"featured_media":18004,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[10475],"tags":[13390,12408,10014,8946,9056,12405,8344,12411,12867,9887],"class_list":["post-18006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en","tag-average-salary","tag-performanca-en","tag-performance-en-2","tag-private-sector","tag-productivity","tag-produktiviteti","tag-public-sector","tag-rritja-e-pagave-en","tag-salary-increase","tag-tourism-en-2"],"featured_image_src":{"landsacpe":["https:\/\/altax.al\/wp-content\/uploads\/2024\/03\/paga-mesatare.jpg",636,308,false],"list":["https:\/\/altax.al\/wp-content\/uploads\/2024\/03\/paga-mesatare-463x308.jpg",463,308,true],"medium":["https:\/\/altax.al\/wp-content\/uploads\/2024\/03\/paga-mesatare-300x145.jpg",300,145,true],"full":["https:\/\/altax.al\/wp-content\/uploads\/2024\/03\/paga-mesatare.jpg",636,308,false]},"yoast_head":"\nAverage salary indicators in 2023 in the public and private sector and the need for productivity - 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