Serbia Economic and FDI Outlook

Growth in Wages in January 2024 and Employment in National Bank of Serbia Real wage growth in the private sector in January 2024 (8.5% y/y) Chart 19 Nominal net wages by economic sector (y/y growth, in %) ■Transportation and storage ■Tourism and cattering ■Construction ■Trade Agriculture Period January-February 2024 High level of formal employment in the private sector in February 2024 Chart 20 Contribution to y-o-y growth in total formal employment by economic sector (period average, in pp) 4,0 Education ■Manufacturing Administrative activities 3,0 Health Care ■Information and communications 2,0 1.0 3.3 2.6 2.6 2.0 1.9 2.2 1.6 26,0 22,0 18,0 14,0 10,0 6,0 2,0 -2,0 Sources: SORS. January 2024 10 1,0 0,0 -1,0 -2,0 0,5 2016 2017 2018 2019 2020 2021 2022 2023 Sources: SORS and NBS calculation. Professional act.; Admin. act. Industry&water supply Trade, F&A, Transport, ICT Total formal employment (in %) Agriculture&farm. Construction Other activities January- February 2024 • In the January 2024, the nominal average net wage was 95,836 dinars (818 euros) and is higher by 15.8%. The growth was driven by a faster growth of wages in the public sector (16.2% y/y) than in the private sector (15.6% y/y). In January 2024, a double-digit growth of average wages was achieved in all activities, and it is most pronounced in electricity, gas and steam supply sector and transportation and storage. • In January 2024, nominal net wages grew slightly faster than inflation, but still there is no significant inflationary pressures induced from the labour market. • Total formal employment in the period January-February 2024 amounted to 2.36 million persons and is higher by 0.5% y/y (13 thousand persons). This growth was led by private sector growth of 0.6% y/y (about 11 thousand persons), with a high level of employment in the private sector of about 1.75 million persons. • Employment growth is present in most activities. Growth stands out in professional and scientific activities, in health care, as well as in ICT sector. 12

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