Annual increase in labour costs at 5.1% in euro area (2024)

Euro indicators 17 June 2024 Next release: 16 September 2024

First quarter of 2024

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Increase at 5.5% in EU

Overview

In the first quarter of 2024 the hourly labour costs rose by 5.1% in the euro area and by 5.5% in the EU, compared with the same quarter of the previous year. These figures are published by Eurostat, the statistical office of the European Union.

The two main components of labour costs are wages & salaries and non-wage costs.

In the euro area, in the first quarter of 2024 compared with the same quarter of the previous year

  • the costs of hourly wages & salaries increased by 5.3%, while

  • the non-wage component increased by 4.5%.

In the EU, in the first quarter of 2024 compared with the same quarter of the previous year

  • the costs of hourly wages & salaries increased by 5.8% and

  • the non-wage component increased by 4.8%.

Annual increase in labour costs at 5.1% in euro area (1)

Breakdown by economic activity

In the first quarter of 2024 compared with the same quarter of the previous year, hourly labour costs in the euro area rose by 5.3% in the (mainly) non-business economy and by 5.0% in the business economy:

  • +4.8% in industry,

  • +5.2% in construction and

  • +5.0% in services.

In the EU, hourly labour costs grew by 5.6% in the (mainly) non-business economy and by 5.5% in the business economy:

  • +5.5% in industry,

  • +5.8 % in construction and

  • +5.5% in services.

In the EU, in the first quarter of 2024 compared with the same quarter of the previous year, the economic activity (NACE Rev. 2 sections) that recorded the highest increases in hourly wage costs were:

  • R – ‘Arts, entertainment and recreation’ (+8.7%)

  • B – ‘Mining and quarrying’ (+7.8%).

The lowest annual increases were recorded in NACE Rev.2 sections:

  • L – ‘Real estate activities’ (+0.7%)

  • D – ‘Electricity, gas, steam and air conditioning supply’ (+2.3%).

In the EU, in the first quarter of 2024 compared with the same quarter of the previous year, the economic activity (NACE Rev. 2 sections) that recorded the highest increases in the non-wage component were:

  • I – ‘Accommodation and food service activities’ (+7.1%)

  • R – ‘Arts, entertainment and recreation’ (+7.0%)

The lowest annual increases were recorded in NACE Rev.2 sections:

  • L – ‘Real estate activities’ (+1.7%)

  • Q – ‘Human health and social work activities’ (+1.9%).

Annual increase in labour costs at 5.1% in euro area (2)

Hourly wage costs across countries

In the first quarter of 2024 compared with the same quarter of the previous year, the highest increases in hourly wage costs for the whole economy were recorded in Romania (+16.4%), Bulgaria (+15.8%), Croatia (+15.3%), Poland (+14.1%) and Hungary (+13.7%). Two more EU Member States recorded an increase above 10%, namely: Latvia (+12.7%) and Lithuania (+11.1%).

Annual increase in labour costs at 5.1% in euro area (3)

Tables

Nominal hourly labour costs of whole economy

(NACE Rev. 2 sections B to S)

% change compared with same quarter of previous year - calendar adjusted

Q1 2023

Q4 2023

Q1 2024

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

Euro area

5.2

4.9

6.4

3.4

3.2

4.1

5.1

5.3

4.5

EU

5.4

5.2

6.2

4.1

3.9

4.5

5.5

5.8

4.8

Belgium

9.6

10.1

8.3

6.9

7.0

6.7

2.3

2.2

2.3

Bulgaria

15.3

15.8

12.5

11.9

12.2

10.4

15.8

15.8

15.9

Czechia

7.4

7.3

7.5

6.0

6.0

6.0

5.9

5.8

6.0

Denmark

2.9

2.9

3.3

2.0

1.9

2.5

2.5

2.5

2.7

Germany

6.1

5.3

8.5

2.3

2.1

2.9

5.9

6.3

4.4

Estonia

11.7

12.0

11.1

10.8

10.9

10.7

7.4

7.5

7.1

Ireland

10.6

4.2

67.1

8.1

2.6

48.3

5.6

4.8

10.2

Greece

6.1

6.4

5.0

6.5

6.5

6.4

9.0

7.9

12.6

Spain

4.6

4.4

5.2

5.4

4.4

8.5

4.7

4.5

5.3

France

4.3

4.5

4.0

2.9

2.7

3.4

2.7

2.6

2.9

Croatia

11.4

11.4

11.7

15.6

15.6

15.8

15.2

15.3

14.9

Italy

1.8

1.5

2.8

0.0

0.0

-0.2

3.1

3.3

2.6

Cyprus

6.0

6.2

5.3

4.9

5.1

4.2

4.9

4.5

6.5

Latvia

6.3

6.5

5.4

10.9

11.1

10.5

13.6

12.7

16.9

Lithuania

13.6

13.2

22.3

11.2

11.2

11.2

10.9

11.1

7.7

Luxembourg

4.1

4.0

5.3

8.2

8.1

8.9

5.3

5.4

4.5

Hungary

9.6

9.7

8.5

16.2

16.4

15.2

13.7

13.7

14.1

Malta

8.5

4.5

:c

3.2

3.3

2.2

4.2

5.5

:c

Netherlands

5.3

5.2

5.7

5.4

5.7

4.3

7.8

7.6

8.2

Austria

5.2

5.5

4.2

8.0

8.0

7.8

9.8

9.8

9.9

Poland

10.8

10.8

11.0

13.1

13.1

13.1

14.1

14.1

14.0

Portugal

6.7

6.4

7.8

6.3

6.0

7.4

6.2

6.3

6.1

Romania

14.4

14.4

14.0

16.8

16.9

16.7

16.4

16.4

16.5

Slovenia

7.2

7.4

6.3

11.8

12.5

7.7

9.3

9.6

8.2

Slovakia

7.5

7.7

7.2

9.0

9.6

7.1

11.2

9.8

15.5

Finland

-0.2

-0.4

0.6

4.2

4.1

4.9

3.4

4.1

0.2

Sweden

2.5

3.4

0.8

4.6

4.4

5.1

4.0

4.1

3.7

Norway

3.7

3.4

5.4

8.9

5.1

31.2

4.8

4.7

4.7

Iceland

8.3

8.2

8.6

8.6

8.4

9.3

10.2

10.2

10.3

Labour cost data are subject to revision, in particular for the latest quarters, when new source data become available.

: not available c confidential

TOTAL = total labour costs WAGES = wage and salary costs OTHER = non-wage costs

Source dataset: lc_lci_r2_q

Annual increase in labour costs at 5.1% in euro area (4)

Nominal hourly labour costs of business economy

(NACE Rev. 2 sections B to N)

% change compared with same quarter of previous year - calendar adjusted

Q1 2023

Q4 2023

Q1 2024

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

Euro area

5.7

5.3

6.9

4.1

3.8

5.3

5.0

5.0

4.9

EU

6.0

5.8

6.6

4.7

4.5

5.5

5.5

5.6

5.3

Belgium

9.7

10.3

8.2

6.9

6.9

6.8

2.3

2.3

2.3

Bulgaria

16.7

17.2

13.7

11.2

11.6

9.1

15.8

15.7

16.1

Czechia

8.1

8.0

8.2

6.8

6.8

6.9

6.6

6.5

6.8

Denmark

3.1

3.1

3.0

2.3

2.2

2.8

2.8

2.8

3.1

Germany

6.9

6.4

8.7

2.5

2.3

3.4

5.9

6.1

5.4

Estonia

11.0

11.0

11.1

8.4

8.6

8.0

7.3

7.5

6.7

Ireland

14.3

3.8

98.9

14.6

4.8

77.6

6.4

5.4

10.5

Greece

9.7

10.0

8.7

8.5

8.0

10.4

11.8

10.0

18.9

Spain

4.9

4.7

5.5

6.5

5.7

9.0

5.0

4.8

5.6

France

4.0

4.3

3.2

3.1

2.9

3.7

3.0

2.8

3.3

Croatia

11.6

11.6

12.0

14.5

14.4

15.0

12.2

12.3

12.1

Italy

1.7

1.2

3.0

2.3

2.2

2.7

1.6

1.7

1.2

Cyprus

5.7

5.7

5.8

4.4

4.4

4.4

5.3

4.8

7.4

Latvia

6.2

6.3

5.5

10.7

10.8

10.1

13.1

12.9

14.1

Lithuania

14.0

13.7

19.8

11.3

11.3

11.0

10.3

10.4

9.3

Luxembourg

3.8

3.6

5.1

7.5

7.4

8.7

4.9

5.0

4.2

Hungary

17.0

17.4

14.2

15.4

15.5

14.5

13.5

13.5

13.4

Malta

12.8

6.7

:c

4.4

4.4

5.8

4.6

4.7

2.8

Netherlands

6.1

5.4

9.0

5.5

5.5

5.7

7.2

6.9

8.6

Austria

5.1

5.4

4.3

8.5

8.6

8.1

10.2

9.9

11.1

Poland

10.7

10.6

10.9

12.8

12.8

12.9

13.2

13.2

13.2

Portugal

6.0

5.7

7.0

6.3

6.1

7.2

4.6

4.6

4.6

Romania

16.5

16.5

16.2

17.3

17.4

17.3

15.9

15.9

16.1

Slovenia

8.1

8.1

7.8

12.6

13.3

8.5

9.5

9.6

8.4

Slovakia

7.1

7.3

6.8

7.2

8.1

4.6

11.0

9.3

16.1

Finland

0.4

0.2

1.0

5.1

5.0

5.7

2.3

2.9

-0.6

Sweden

2.2

4.0

-1.6

4.0

4.8

2.2

5.1

4.5

6.2

Norway

3.7

3.3

5.9

8.5

3.8

35.4

5.4

5.3

5.6

Iceland

9.3

9.3

9.1

8.6

8.6

8.7

10.0

9.9

10.1

Labour cost data are subject to revision, in particular for the latest quarters, when new source data become available.

TOTAL = total labour costs WAGES = wage and salary costs OTHER = non-wage costs

Source dataset: lc_lci_r2_q

Annual increase in labour costs at 5.1% in euro area (5)

Nominal hourly labour costs of mainly non-business economy

(NACE Rev. 2 sections O to S)

% change compared with same quarter of previous year - calendar adjusted

Q1 2023

Q4 2023

Q1 2024

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

Euro area

4.2

3.8

5.4

2.0

2.1

1.7

5.3

5.8

3.8

EU

4.3

3.8

5.4

2.7

2.8

2.5

5.6

6.2

3.8

Belgium

9.5

9.7

8.6

7.1

7.2

6.8

2.2

2.2

2.3

Bulgaria

10.8

11.1

9.3

13.9

13.9

13.6

16.3

16.5

15.6

Czechia

5.7

5.8

5.5

3.8

3.8

3.8

4.1

4.1

4.1

Denmark

2.6

2.4

4.0

1.5

1.4

2.0

2.0

2.0

1.9

Germany

4.2

2.7

8.1

1.7

1.6

1.9

5.7

6.9

2.7

Estonia

13.5

14.4

11.0

17.1

16.8

17.7

7.7

7.5

8.5

Ireland

2.4

4.9

:c

-4.8

-1.5

:c

4.2

3.6

:c

Greece

0.6

0.8

-0.2

2.9

3.4

1.4

4.3

4.1

4.8

Spain

3.9

3.7

4.5

3.2

1.9

7.3

4.0

3.8

4.6

France

5.0

4.7

5.6

2.3

2.1

2.8

2.0

2.0

2.0

Croatia

10.8

10.7

10.9

17.8

17.8

17.5

21.9

22.1

20.8

Italy

2.2

2.1

2.5

-4.2

-4.0

-4.8

6.1

6.4

5.2

Cyprus

6.7

7.5

4.4

6.1

6.9

3.8

4.2

3.8

5.3

Latvia

7.1

7.4

6.0

11.6

11.7

11.3

14.4

12.0

23.7

Lithuania

12.3

11.7

29.6

11.0

11.0

11.6

12.5

12.9

3.2

Luxembourg

5.3

5.2

5.6

9.8

9.8

9.5

6.7

6.8

5.2

Hungary

-5.7

-6.0

-3.3

18.1

18.4

16.5

14.3

14.1

15.9

Malta

1.2

0.5

8.4

1.1

1.4

-1.4

3.4

7.1

:c

Netherlands

3.4

4.5

0.4

5.3

6.3

2.3

9.1

9.4

7.8

Austria

5.4

5.9

3.8

6.5

6.4

6.8

9.0

9.7

6.7

Poland

11.2

11.2

11.3

14.0

14.0

13.9

16.4

16.5

16.2

Portugal

8.3

7.9

10.1

6.2

5.9

7.7

9.3

9.3

9.2

Romania

8.1

8.2

7.5

15.2

15.3

14.9

18.0

18.0

17.6

Slovenia

5.2

5.6

3.0

9.4

10.1

5.3

9.0

9.3

7.4

Slovakia

8.4

8.6

8.1

12.9

12.9

12.9

11.7

10.8

14.4

Finland

-1.5

-1.7

-0.5

2.7

2.5

3.6

5.5

6.3

1.8

Sweden

3.1

2.1

5.3

5.8

3.7

10.4

1.9

3.3

-0.8

Norway

3.4

3.3

4.1

9.7

7.2

23.8

3.6

3.6

3.3

Iceland

6.6

6.2

7.8

8.6

8.1

10.0

10.5

10.5

10.5

Labour cost data are subject to revision, in particular for the latest quarters, when new source data become available.

: not available c confidential

TOTAL = total labour costs WAGES = wage and salary costs OTHER = non-wage costs

Source dataset: lc_lci_r2_q

Annual increase in labour costs at 5.1% in euro area (6)

Nominal hourly labour costs by main economic activity branches for the business economy

Nominal hourly labour costs of Industry

(NACE Rev. 2 sections B to E)

% change compared with same quarter of previous year - calendar adjusted

Q1 2023

Q4 2023

Q1 2024

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

Euro area

5.2

5.1

5.4

4.2

4.0

4.6

4.8

4.9

4.5

EU

5.7

5.8

5.4

4.9

4.9

4.9

5.5

5.7

5.0

Belgium

9.2

9.8

7.9

5.5

5.6

5.5

3.4

3.4

3.4

Bulgaria

18.6

19.6

13.7

10.9

11.3

9.1

13.9

14.0

13.6

Czechia

8.6

8.5

9.1

6.1

6.0

6.2

6.8

6.8

6.6

Denmark

3.8

3.9

2.8

1.1

0.7

3.1

2.1

2.0

2.3

Germany

6.2

6.1

6.7

3.3

3.3

3.6

5.0

5.3

4.0

Estonia

8.2

8.3

8.1

3.9

3.7

4.4

7.9

8.0

7.6

Ireland

10.0

5.4

37.3

7.2

4.6

20.9

5.7

5.5

6.4

Greece

3.1

3.1

2.9

5.1

4.6

7.3

7.3

6.2

11.5

Spain

5.3

5.0

6.0

5.5

5.0

6.9

4.6

4.2

5.8

France

4.1

4.5

3.2

3.5

3.1

4.4

3.2

3.0

3.8

Croatia

9.4

9.3

9.8

14.3

14.2

15.0

13.6

13.5

13.7

Italy

1.8

1.6

2.5

2.8

2.9

2.6

3.4

3.5

3.0

Cyprus

5.5

5.5

5.6

5.1

5.1

5.4

5.5

5.1

7.4

Latvia

6.6

7.0

5.3

9.7

9.9

8.8

12.3

12.2

12.7

Lithuania

11.8

11.2

:c

10.8

10.9

:c

11.1

11.4

:c

Luxembourg

2.4

2.3

3.7

8.8

8.7

9.7

5.4

5.7

2.9

Hungary

20.1

20.7

16.2

14.7

14.9

13.8

13.2

13.1

13.7

Malta

14.3

8.3

:c

4.5

4.8

0.6

7.1

7.3

3.2

Netherlands

4.6

4.7

4.4

6.4

6.2

7.2

:c

:c

:c

Austria

4.9

5.0

4.6

7.5

7.2

8.4

7.9

7.5

9.3

Poland

10.1

10.1

10.1

13.6

13.6

13.8

13.5

13.5

13.5

Portugal

7.1

6.9

7.7

6.3

6.1

6.9

4.8

4.8

4.7

Romania

16.9

16.9

16.5

16.6

16.6

16.6

14.4

14.4

14.2

Slovenia

7.7

7.5

8.5

13.3

14.5

6.6

8.2

9.0

3.9

Slovakia

6.3

6.9

4.8

6.9

7.9

4.2

12.0

10.8

15.6

Finland

0.9

0.7

1.5

6.4

6.2

7.3

1.3

1.7

-0.6

Sweden

2.1

3.8

-1.7

3.4

4.2

1.6

5.1

4.7

6.1

Norway

3.6

2.6

9.1

9.6

3.7

43.8

4.5

4.8

2.1

Iceland

8.8

9.0

8.3

9.7

9.9

8.6

13.5

13.6

13.5

Labour cost data are subject to revision, in particular for the latest quarters, when new source data become available.

: not available c confidential

TOTAL = total labour costs WAGES = wage and salary costs OTHER = non-wage costs

Source dataset: lc_lci_r2_q

Annual increase in labour costs at 5.1% in euro area (7)

Nominal hourly labour costs of Construction

(NACE Rev. 2 section F)

% change compared with same quarter of previous year - calendar adjusted

Q1 2023

Q4 2023

Q1 2024

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

Euro area

5.4

4.4

8.6

4.9

3.5

9.3

5.2

5.4

4.5

EU

5.6

4.8

7.9

5.5

4.4

9.0

5.8

6.1

5.0

Belgium

10.0

10.7

8.8

7.1

7.1

7.1

2.3

2.3

2.3

Bulgaria

14.2

14.2

13.9

19.4

20.4

14.1

19.3

20.6

12.7

Czechia

9.3

9.3

9.3

8.1

8.1

8.2

5.9

5.9

6.0

Denmark

3.5

3.5

3.3

2.9

2.8

3.2

3.3

3.4

2.7

Germany

3.7

3.0

5.7

2.4

2.2

3.3

6.3

7.0

4.0

Estonia

5.2

5.3

5.0

4.4

4.3

4.5

6.2

6.5

5.4

Ireland

:c

3.3

:c

:c

4.5

:c

:c

7.1

:c

Greece

12.5

9.8

22.0

7.0

7.3

6.5

13.9

12.2

19.5

Spain

4.2

3.8

5.2

6.3

5.9

7.4

3.4

2.5

5.3

France

4.3

5.0

2.4

2.9

2.9

3.0

2.3

2.4

2.2

Croatia

13.6

13.6

13.4

17.1

17.2

16.3

11.6

12.0

8.8

Italy

4.6

4.5

4.9

2.3

1.7

3.8

4.3

4.8

2.9

Cyprus

5.6

5.6

5.7

3.6

3.6

3.7

4.5

4.0

6.7

Latvia

-0.6

-0.1

-2.6

9.7

10.2

8.0

14.7

14.7

14.7

Lithuania

15.9

16.6

0.3

15.9

16.2

7.5

15.5

14.5

40.8

Luxembourg

4.9

4.9

5.3

9.0

8.8

10.1

6.5

6.4

7.1

Hungary

15.4

15.6

13.7

16.8

16.8

17.1

17.0

16.9

17.6

Malta

8.5

8.4

9.8

0.7

1.0

-3.0

4.5

5.0

-4.0

Netherlands

5.3

6.2

2.3

1.3

2.1

-1.7

:c

:c

:c

Austria

5.4

5.3

6.0

8.8

8.1

11.2

10.0

8.7

14.6

Poland

4.2

4.2

4.3

11.6

11.6

11.6

16.7

16.7

16.6

Portugal

7.1

5.3

13.7

4.9

3.1

11.3

4.3

4.3

4.2

Romania

21.9

21.9

21.7

30.1

30.1

30.2

20.5

20.5

20.6

Slovenia

8.0

8.1

7.9

12.1

12.6

9.3

10.7

10.5

11.0

Slovakia

11.0

6.8

26.4

6.5

8.5

0.7

9.0

6.7

16.1

Finland

-3.8

-3.8

-3.6

3.1

3.0

3.4

6.6

7.5

2.6

Sweden

2.5

4.1

-1.2

4.6

4.5

4.8

5.6

5.0

7.2

Norway

5.6

5.6

5.8

6.0

3.2

22.1

5.8

5.6

6.9

Iceland

9.8

9.8

9.7

8.2

8.1

8.6

11.0

11.1

10.8

Labour cost data are subject to revision, in particular for the latest quarters, when new source data become available.

c confidential : not available

TOTAL = total labour costs WAGES = wage and salary costs OTHER = non-wage costs

Source dataset: lc_lci_r2_q

Annual increase in labour costs at 5.1% in euro area (8)

Nominal hourly labour costs of Services

(NACE Rev. 2 sections G to N)

% change compared with same quarter of previous year - calendar adjusted

Q1 2023

Q4 2023

Q1 2024

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

TOTAL

WAGES

OTHER

Euro area

5.9

5.5

7.4

4.1

3.7

5.2

5.0

5.0

5.1

EU

6.1

5.8

6.9

4.6

4.3

5.2

5.5

5.5

5.4

Belgium

9.7

10.3

8.2

7.5

7.5

7.5

1.8

1.8

1.8

Bulgaria

16.0

16.4

13.8

10.7

11.1

8.6

16.3

16.1

17.8

Czechia

7.4

7.5

7.2

7.3

7.3

7.4

6.5

6.3

7.0

Denmark

2.9

2.8

3.0

2.7

2.7

2.7

3.1

3.0

3.4

Germany

7.8

7.1

10.6

2.1

1.7

3.3

6.4

6.4

6.5

Estonia

13.2

13.1

13.5

11.2

11.6

10.3

7.2

7.5

6.5

Ireland

11.5

3.5

85.7

10.0

4.8

44.0

5.9

5.2

10.0

Greece

11.7

12.2

10.0

9.6

9.1

11.6

13.1

11.1

21.2

Spain

4.8

4.6

5.4

6.9

5.9

10.0

5.3

5.1

5.6

France

3.9

4.2

3.3

3.1

2.9

3.6

2.9

2.8

3.3

Croatia

12.4

12.4

12.8

14.2

14.1

14.8

11.8

11.7

11.9

Italy

1.1

0.5

3.0

2.1

1.9

2.8

0.1

0.2

-0.2

Cyprus

5.7

5.7

5.8

4.3

4.3

4.3

5.3

4.9

7.5

Latvia

7.0

7.1