Hourly labor costs in the Euro Area increased by 5.3% year-on-year in the third quarter of 2023, up from the 4.5% rise in the previous three-month period. Wages and salaries per hour worked surged by 5.3%, marking an acceleration from the 4.6% recorded in the second quarter, while the non-wage component advanced by 5.1%, following a 4.2% increase. Within the bloc's economic activities, the largest labor cost increases were observed in administrative and support service activities (6.9% compared to 7.2% in Q2), electricity, gas, steam, and air conditioning supply (6.8% compared to 4.6%), and transportation and storage (6.4% compared to 7.9%). The weakest increase was reported for real estate activities (1.9% compared to 2.3%). source: EUROSTAT

Labour Costs In the Euro Area decreased to 107.40 points in the third quarter of 2023 from 113.80 points in the second quarter of 2023. Labour Costs in Euro Area averaged 92.23 points from 2009 until 2023, reaching an all time high of 114.10 points in the fourth quarter of 2022 and a record low of 75.60 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 February of 2024.

Labour Costs In the Euro Area decreased to 107.40 points in the third quarter of 2023 from 113.80 points in the second quarter of 2023. Labour Costs in Euro Area is expected to be 106.60 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Labour Costs is projected to trend around 110.97 points in 2025 and 112.53 points in 2026, according to our econometric models.

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Euro Area Labour Costs


Calendar GMT Reference Actual Previous Consensus TEForecast
2023-09-15 09:00 AM
Labour Cost Index YoY
Q2 4.5% 5.2% 4.3%
2023-12-15 10:00 AM
Labour Cost Index YoY
Q3 5.3% 4.5% 4.4%


Related Last Previous Unit Reference
Unemployment Rate 6.40 6.40 percent Dec 2023
Unemployed Persons 10909.00 10926.00 Thousand Dec 2023
Long Term Unemployment Rate 2.30 2.30 percent Sep 2023
Youth Unemployment Rate 14.40 14.50 percent Dec 2023
Productivity 103.57 103.65 points Sep 2023
Labour Costs 107.40 113.80 points Sep 2023
Wages 2179.00 2151.00 EUR/Month Sep 2023
Wage Growth 5.30 4.60 percent Sep 2023
Population 345.41 342.81 Million Dec 2023
Employment Change 0.30 0.20 percent Dec 2023
Full Time Employment 123571.40 122704.80 Thousand Sep 2023
Labor Force Participation Rate 75.30 75.10 percent Sep 2023
Part Time Employment 31456.70 32031.60 Thousand Sep 2023

Euro Area Labour Costs
The Labour Cost Index in the Euro Area is a short-term indicator showing the development of hourly labour costs incurred by employers, in nominal terms, that is without adjusting for price developments. It is calculated dividing the labour cost in national currency by the number of hours worked. The quarterly changes in hourly employers’ costs are measured for total labour costs and its main components: wages and salaries; and non-wage costs (labour costs other than wages and salaries). Total labour costs (TOT) cover wage and non-wage costs less subsidies. They do not include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc.
Actual Previous Highest Lowest Dates Unit Frequency
107.40 113.80 114.10 75.60 2009 - 2023 points Quarterly
2020=100, WDA

News Stream
Eurozone Labor Costs Rise at Faster Pace in Q3
Hourly labor costs in the Euro Area increased by 5.3% year-on-year in the third quarter of 2023, up from the 4.5% rise in the previous three-month period. Wages and salaries per hour worked surged by 5.3%, marking an acceleration from the 4.6% recorded in the second quarter, while the non-wage component advanced by 5.1%, following a 4.2% increase. Within the bloc's economic activities, the largest labor cost increases were observed in administrative and support service activities (6.9% compared to 7.2% in Q2), electricity, gas, steam, and air conditioning supply (6.8% compared to 4.6%), and transportation and storage (6.4% compared to 7.9%). The weakest increase was reported for real estate activities (1.9% compared to 2.3%).
2023-12-15
Eurozone Labor Costs Growth Slows for 2nd Quarter
Hourly labor costs in the Euro Area rose by 4.5% year-on-year in the second quarter of 2023, easing from the upwardly revised 5.2% increase in the previous period, suggesting that the currency bloc’s economic developments are aligning with the ECB’s historical tightening path. Wages and salaries per hour worked rose by 4.6%, slowing from the upwardly revised 4.9%, while the non-wage component increased by 4% from the 6.2% jump in the previous quarter. Among economic activities within the European Union, labor cost growth was the lowest in real estate activities (2.4% vs 5.9% in Q1) and professional, scientific, and technical services (2.4% vs 4.6%). On the other hand, labor costs were the highest for mining and quarrying (12.5% vs 8.5%).
2023-09-15
Eurozone Labor Costs Rise More than Expected
Hourly labor costs in the Euro Area rose by 5 percent year-on-year in the first quarter of 2023, easing from a 5.6 percent increase in the previous period and compared with market expectations of 3.3 percent. Wages and salaries per hour worked expanded by 4.6 percent (vs 5 percent in Q4) and the non-wage component rose by 6.2 percent (vs 7.4 percent). Among economic activities for the whole 27-nation European Union, labor cost growth was the highest in electricity, gas, steam and air conditioning supply (8.9 percent), followed by accommodation and food service activities (8.7 percent), mining and quarrying (8.4 percent) and administrative and support service activities (7.9 percent).
2023-06-16