Hourly labour costs in the Euro Area increased 3.4 percent year-on-year in the first quarter of 2020, following a downwardly revised 2.3 percent rise in the previous quarter and way above market forecasts of a 2.3 percent gain. It is the biggest increase in labour costs since at least 2009 as COVID-19 containment measures began to be widely introduced by Member States, leading to business and store closures. The cost of wages and salaries per hour worked grew by 3.4 percent (vs 2.4 percent in Q4) and the non-wage component grew by 3.6 percent (vs 2.2 percent). By sector, hourly labour costs rose by 2.6 percent in industry, 3 percent in construction, 3.4 percent in services and 4.2 percent in the (mainly) nonbusiness economy. Among Eurozone largest economies, labour costs increased 4.3 percent in Germany, 0.9 percent in France, 3 percent in Italy and 3.8 percent in Spain.
Labour Costs in the Euro Area averaged 97.69 points from 2009 until 2020, reaching an all time high of 113.20 points in the fourth quarter of 2019 and a record low of 83.40 points in the first quarter of 2009. This page provides the latest reported value for - Euro Area Labour Costs - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Euro Area Labour Costs - data, historical chart, forecasts and calendar of releases - was last updated on August of 2020. source: Eurostat
Labour Costs in Euro Area is expected to be 100.71 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Labour Costs in Euro Area to stand at 104.34 in 12 months time. In the long-term, the Euro Area Labour Costs is projected to trend around 112.60 points in 2021 and 114.51 points in 2022, according to our econometric models.