Labor costs: Hourly wages rise in first quarter

Labor costs: Hourly wages rise in first quarter

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By 5.1% in the euro zone and by 5.5% in the European Union, hourly wages increased in the first quarter of the year labor costs compared to the corresponding period last year, according to data released by European Statistical Authority.

Eurostat states that the two main components of labor costs are wages and non-wage costs.

In the euro area, in the first quarter of 2024 compared to the same quarter last year, the cost of hourly and daily wages increased by 5.3%, while the non-wage component increased by 4.5%.

The corresponding percentages in the EU are 5.8% and 4.8%.

Labor costs in Greece

According to Eurostat data, hourly wage costs in Greece increased by 7.9%. Specifically in the business economy, the increase is 10%.

Regarding the individual sectors, the hourly wage increase in our country is as follows:

  • in industry 7.3%
  • in construction 13.9%
  • in services 13.1%

Distribution of labor costs by economic activity

In the first quarter of 2024 compared to the same quarter last year, hourly labor costs in the euro area increased by 5.3% in the (mostly) non-business economy and by 5.0% in the business economy:

In particular:

  • + 4.8% in industry,
  • + 5.2% in construction and
  • + 5.0% on services.

In the EU, hourly labor costs rose by 5.6% in the (mostly) non-business economy and by 5.5% in the business economy:

  • + 5.5% in industry,
  • + 5.8 % in construction and
  • + 5.5% on services.

In the EU, in the first quarter of 2024 compared to the same quarter last year, the economic activity that recorded the highest increase in hourly wages was:

  • R – “Arts, recreation and entertainment” (+8.7%)
  • B – “Mining and quarries” (+7.8%).

The lowest annual increase was recorded in sections of NACE Rev. 2:

  • L – “Real estate activities” (+0.7%)
  • D – “Supply of electricity, gas, steam and air conditioning” (+2.3%).

In the EU, in the first quarter of 2024 compared to the same quarter last year, the economic activity (NACE Rev. 2 divisions) that recorded the highest increase in the non-wage component was:

  • I – “Activities in accommodation and catering services” (+7.1%)
  • R – “Arts, recreation and entertainment” (+7.0%)

The lowest annual increase was recorded in sections of NACE Rev. 2:

  • L – “Real estate activities” (+1.7%)
  • E – “Human health activities and social work” (+1.9%).

Hourly wage costs between countries

In the first quarter of 2024 compared to the same quarter last year, the highest increase in hourly wages for the whole economy was recorded in Romania (+ 16.4%), Bulgaria (+ 15.8%), Croatia (+ 15.3%) ), in Poland (+14.1%) and in Hungary (+13.7%). Two other EU member states registered an increase of more than 10%, namely: Latvia (+12.7%) and Lithuania (+11.1%).

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