Wages lagging behind productivity growth, impacting service sector workers.
The article examines the relationship between wage growth and labor productivity in the South Bohemian region and the Czech Republic. It suggests that wages should grow slower than productivity to maintain economic balance. The study found that labor productivity is increasing faster than real wages, indicating no inflationary pressure from demand or supply. The main source of productivity growth is in industry and agriculture due to modernization, while the service sector sees wages growing faster than productivity.