In the third quarter of 2024 the hourly labour costs rose by 4.6% in the euro area and by 5.1% 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.
In the euro area, in the third quarter of 2024 compared with the same quarter of the previous year
In the EU, in the third quarter of 2024 compared with the same quarter of the previous year
In the third quarter of 2024 compared with the same quarter of the previous year, hourly labour costs in the euro area rose by 4.6% both in the (mainly) non-business economy and in the business economy:
In the EU, hourly labour costs grew by 5.1% in the (mainly) non-business economy and by 5.0% in the business economy:
In the EU, in the third 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:
The lowest annual increase was recorded in NACE Rev. 2 section B – ‘Mining and quarrying’ (+2.6%).
In the EU, in the third 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:
The lowest annual increase was recorded in NACE Rev. 2 section B – ‘Mining and quarrying’ (+3.2%).
In the third 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 (+17.1%), Croatia (+15.1%), Hungary (+14.1%), Bulgaria (+12.7%) and Latvia (+12.6%). Three more EU Member States recorded an increase of 10% or more, namely: Poland (+12.0%), Lithuania (+11.0%) and Austria (+10.0%), while Greece recorded a decrease (-2.9%).
Notes for users
Revisions and timetable
The Labour Cost Index data are subject to revision, in particular for the latest quarters, when new source data become available. The original data, before any subsequent revision, are also available here.
Compared with the News Release of 16 September 2024, the annual growth rate of the hourly labour costs, for the total economy in the second quarter of 2024 was revised from +4.7% to +5.2% for the euro area and from +5.2% to +5.6% for the EU.
Eurostat releases early estimates for the hourly labour costs of the euro area and of the EU, around 50 days after the reference quarter. Early estimates for the third quarter of 2024 have been released on 19 November 2024 and early estimates for the fourth quarter are scheduled on 19 February 2025.
In the case of Ireland, the annual growth of hourly wages was impacted downwards by the phasing out of the Employment Wage Subsidy Scheme (EWSS) introduced by government in March 2020 to support wages during the COVID-19 pandemic. It enabled employees, whose employers’ business activities were adversely affected by the pandemic, to receive supports directly from their employer through the payroll system.
Methods and definitions
The Labour Cost Index 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. Therefore, the development of variables, labour costs and hours worked, affect the evolution of the index (base year = 2020).
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.
Wage and salary costs (WAG) include direct remuneration, bonuses, and allowances paid by an employer in cash or in kind to an employee in return for work done, payments to employees saving schemes, payments for days not worked and remuneration in kind such as food, drink, fuel, company cars, etc.
Labour costs other than wages and salaries (OTH – non-wage costs) include the employers’ social contributions plus employment taxes regarded as labour costs less subsidies intended to refund part or the entire employer’s cost of direct remuneration.
Eurostat publishes Labour Cost Index data for NACE Rev. 2 sections B to S. The aggregate is referred to as “Whole economy” for the sake of simplification, although sections A: ‘Agriculture, forestry and fishing’; T: ‘Activities of households as employers; undifferentiated goods and services producing activities of households for own use’ and U: ‘Activities of extraterritorial organisations and bodies’ are excluded. Section N: ‘Administrative and support service activities’ includes the activities of temporary employment agencies.
Geographical information
The euro area (EA20) includes Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.
The European Union (EU27) includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland and Sweden.
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