VILNIUS, May 26 (Xinhua) -- Average nominal wage growth in the Lithuanian economy accelerated to 9.3 percent in the first quarter compared to a year ago, driven by rising wages in the private sector amid a shrinking labor force, Statistics Lithuania announced Friday.
Nominal growth of gross wages in private companies was 10.4 percent, while wages in the public sector increased by 7.2 percent, compared to the same period a year ago.
Wage growth in private sector was the fastest since 2008, amid employers' increased competition to hire employees in a shrinking labor force. The Lithuanian labor market has been negatively affected by emigration and shortage of qualified workers.
"Unemployment has been decreasing, economic situation is favorable to business development, and it is complicated to find an employee," analysts from SEB bank in Lithuania wrote in a note.
Economists are concerned that rapidly growing wages could hamper the country's competitiveness and economic stability.
In the first quarter of the year, Lithuania's GDP increased by 4.1 percent, compared to the same period a year ago.
Lithuania's central bank expects the country's economy to grow by 2.6 percent this year, accelerating from 2.3 percent growth last year.
