In 2024, the average hourly labour costs in the EU were estimated to be €33.5, up on 2023’s rate of €31.9, according to the latest Eurostat figures.
The lowest hourly labour costs were recorded in Bulgaria at €10.6, Romania at €12.5, and Hungary at €14.1.
On the other hand, the highest were found in Luxembourg at €55.2, Denmark at €50.1, and Belgium at €48.2.
The two main components of labour costs are wages and non-wage costs, such as employers’ social contributions.
The share of non-wage costs in the whole EU economy was 24.7%.
Eurostat estimates for 2024 cover enterprises with 10 or more employees and are based on the 2020 Labour cost survey, except for Malta.
What are the sectors with the highest hourly labour costs?
In the EU, labour costs per hour were highest in the mainly non-business economy excluding public administration at €34.2 and the lowest in the construction sector at €30.
However, gaps were larger in the euro area, with industry being the highest paying sector (€39.8 per hour) and construction the lowest (€33.4 per hour).
Between 2023 and 2024, hourly labour costs in the whole economy rose by 5.0% in the EU and by 4.5% in the euro area.
Within the euro area, hourly labour costs increased in all EU countries.
The largest increases were recorded in Croatia (+14.2%), Latvia (+12.1%), and Lithuania (+10.8%).
Meanwhile, the lowest was registered in the Czech Republic (+1.3%), followed by Finland (+1.8%) and Luxembourg (+2.1%).
For EU countries outside the euro area, the hourly labour costs expressed in national currency also increased in all countries, with the largest variations recorded in Romania, Bulgaria, Hungary, and Poland.
The hourly labour costs increased the least in Sweden.
Video editor • Mert Can Yilmaz
Read the full article here