Record rising employment and wages hallmark December

According to the Central Statistical Office (GUS), the number of jobs in December 2006 was 4% higher than a year ago, which marks the biggest growth in history. The increase of salaries in the enterprise sector also proved to be much higher than expected and amounted to 8.5% as compared to the 6.1% forecast. "Despite the low rate of inflation (1.4%), the high increase of salaries may be a basic argument for the Monetary Policy Council that there is a risk of inflation growth and that the decisions of the central bank have to be cautious," stated Piotr Kalisz, an economist with Bank Handlowy. He added that an interest rate increase may be expected in April and May. However, according to economists the situation on the labor market will continue to improve in 2007, with the average increase of salaries to be around 5-6% and unemployment at 13%. (Parkiet, p. 14) E.B.