Montenegro recorded higher employment and a substantial annual decline in unemployment in August, but the increase in nominal wages was insufficient to prevent a fall in workers’ purchasing power. Employment reached 289,982, up 4.38% year on year, while the number of unemployed people declined by 14.09% to 23,405.
Average gross wages increased by 0.32% month on month, while net wages rose by 0.29%. However, after accounting for inflation, real net earnings fell by 0.9%, indicating that workers had less purchasing power despite the nominal wage increases.
Employment gains were recorded across several sectors linked to construction, tourism, transport and industrial activity. Construction registered the strongest annual increase, with employment rising by 8.49%. Manufacturing followed with growth of 8.02%, while accommodation and food services recorded a 6.33% increase.
The number of employees in transport and warehousing grew by 5.74%, while mining and quarrying employment increased by 5.07%. Real estate was the only sector listed to record an annual decline in employment, with the number of workers falling by 3.82%. The August figures show that improvements in employment and unemployment indicators did not translate into higher real earnings, as inflation outpaced monthly wage growth.
