Annual increase in labour costs at 3.4% in euro area

In the fourth quarter of 2023 the hourly labour costs rose by 3.4% in the euro area and by 4.0% in the EU, compared with the same quarter of the previous year. These figures were 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 fourth quarter of 2023 compared with the same quarter of the previous year

• the costs of hourly wages & salaries increased by 3.1%, while
• the non-wage component increased by 4.2%.

Nominal hourly labour costs, whole economy

In the EU, in the fourth quarter of 2023 compared with the same quarter of the previous year

• the costs of hourly wages & salaries increased by 3.8% and
• the non-wage component increased by 4.6%.

Breakdown by economic activity

In the fourth quarter of 2023 compared with the same quarter of the previous year, hourly labour costs in the euro area rose by 1.8% in the (mainly) non-business economy and by 4.2% in the business economy:

• +4.2% in industry,
• +4.4% in construction and
• +4.1% in services.

In the EU, hourly labour costs grew by 2.6% in the (mainly) non-business economy and by 4.7% in the business economy:

• +4.9% in industry,
• +5.0 % in construction and
• +4.6% in services.

Nominal hourly labour costs, wage and non-wage component, EU

In the EU, in the fourth quarter of 2023 compared with the same quarter of the previous year, the economic activity (NACE Rev. 2 sections) that recorded the highest increase in hourly wage costs was:

• B – ‘Mining and quarrying’ (+11.3%).

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

• M – ‘Professional, scientific and technical activities’ (+1.6%)
• Q – ‘Human health and social work activities’ (+2.1%).

The only economic activity (NACE Rev. 2 sections) that recorded a decrease in the non-wage component was:

• R – ‘Arts, entertainment and recreation’ (-0.6%).

Hourly wage costs across countries

In the fourth quarter of 2023 compared with the same quarter of the previous year, the highest increases in hourly wage costs for the whole economy were recorded in Romania (+16.9%), Hungary (+16.3%), Croatia (+16.0%), Poland (+13.1%) and Slovenia (+12.5%).

Nominal hourly wage costs, whole economy

Four more EU Member States recorded an increase above 10%, namely: Bulgaria (+11.9%), Lithuania (+11.2%), Latvia (+11.1%) and Estonia (+10.9%).