K&H: young people seem more pessimistic when it comes to their salary

By: Trademagazin Date: 2024. 10. 08. 10:56

Among working young people, eight out of ten expect to receive a higher salary in the next period. At the same time, almost six out of ten, i.e. 58 percent of those affected, expect an increase that falls short of inflation, i.e. a decrease in real wages, according to the K&H youth index. However, there is a significant difference between the actual inflation data and the deterioration of money perceived by young people: the latter was on average 18 percent in May, while the actual data showed a 4 percent price increase. The results of the research also provide an answer to how young people’s expectations have developed in the long term.

A significant majority of young Hungarians aged 19-29 were not very optimistic about the development of their salary this year in mid-2024, according to the K&H Bank survey. Almost 60 percent of those surveyed said in the second quarter of this year that they believe their earnings will rise below inflation this year, which would mean a decrease in real wages. A similar figure emerged for optimists and truly pessimists: 20 percent of respondents believed that they could expect a salary increase exceeding inflation in 2024, while 18 percent saw no chance of earning more this year than a year ago. The proportion of the most pessimistic was 4 percent: they are the ones who feared a decrease in their salary, according to the representative survey of K&H, which examined the expectations of working 19-29-year-olds regarding their own salary.

The outstanding economic role of Hungary’s central region is proven by the fact that no one in this region thought that they would earn less this year than in 2023. In the eastern region, however, this rate was well above the average: eight percent of those surveyed predicted this dark scenario.