Hourly labour costs rose by 2.2% in the euro area in second 2018 quarter

According to Eurostat data, euro zone labor costs rise at fastest pace in six years

Eurozone labour costs rose at their steepest rate in almost six years in the second quarter of 2018, Eurostat, the statistical office of the European Union announced. Figures show that hourly labour costs rose by 2.2% in the euro area (EA19) and by 2.6% in the EU28 in the second quarter of 2018, compared with the same quarter of the previous year. In comparison, in the first quarter of 2018, hourly labour costs increased by 2.1% and 2.8% respectively. The increase was the highest rate since the third quarter of 2012.

The two main components of labour costs are wages & salaries and non-wage costs. In the euro area, the cost of wages & salaries per hour worked grew by 1.9% and the non-wage component by 2.9% in the second quarter of 2018 compared with the same quarter of the previous year. In the first quarter of 2018, the annual changes were +1.8% and +2.8% respectively.

In the EU28, both the costs of hourly wages & salaries and the non-wage component rose by 2.6% in the second quarter of 2018. In the first quarter of 2018, annual changes were +2.7% and +3.1% respectively

According to Eurostat data the highest annual increases in hourly labour costs for the whole economy were registered in Romania, Latvia and Hungary, while the lowest annual increases in hourly labour costs were recorded in Luxembourg, Spain and the Netherlands.

Similar articles