Press Labour costs up 2.6% in 2015

Press release No. 090 of 10 March 2016

WIESBADEN – In Germany, labour costs per hour worked rose by 2.6% in 2015 on a calendar adjusted basis, compared with a year earlier. The Federal Statistical Office (Destatis) also reports that the costs of gross earnings increased by 2.5%, while non-wage costs were up 3.1%. 

Compared with the 4th quarter of 2014, labour costs in the 4th quarter of 2015 rose by 2.1% in calendar adjusted terms. Compared with the previous quarter, the seasonally and calendar adjusted increase was 0.5%. 

For the third quarter of 2015, rates of labour cost change in industry and the service sector are available for 27 of the 28 European Union (EU) Member States. According to those results, the price of one hour worked in Germany rose by 2.4% in calendar adjusted terms on the third quarter of 2014. In the entire EU, the increase in labour costs averaged 1.8% in that period. The highest growth rates within the EU were recorded in Latvia (+7.4%), Bulgaria (+7.4%) and Romania (+7.3%). Labour costs declined in Portugal (–2.8%), Slovenia (–1.5%), Cyprus (–0.5%), Italy (–0.4%) and Luxembourg (–0.4%). In France, the increase in labour costs (+1.1%) was considerably lower than in Germany. Labour costs remained nearly unchanged in the Netherlands (0.0%), Belgium and Croatia (+0.1% each). 

The rates of labour cost change in countries outside the euro area are measured in the relevant national currency and, consequently, are not currency adjusted. 

Methodological notes

The rates of labour cost change are based on the results of the labour cost index. The latter measures the change in labour costs and additionally provides a breakdown of labour costs into their two components, namely gross earnings and non-wage costs. In all three indices, the costs borne by employers are compared with the hours actually worked by employees.

Labour cost indices for industry and the service sector in Germany 
Year, quarter Index of labour
costs, total
Index of gross
earnings
Index of
non-wage costs
1 Calendar-adjusted, Census X-12-ARIMA
2 Calendar and seasonally adjusted, Census X-12-ARIMA
Change on the previous year in % 1
2007 0.71.8–2.9
2008 2.32.90.6
2009 2.72.53.5
2010 1.10.63.2
2011 2.92.92.7
2012 3.23.52.1
2013 1.71.61.9
20141.91.91.9
20152.62.53.1
Change on the same quarter a year earlier in % 1

2013

 

1st quarter3.93.45.4
2nd quarter1.51.51.5
3rd quarter0.40.6–0.1
4th quarter1.21.20.9
20141st quarter0.71.4–1.9
2nd quarter2.11.83.2
3rd quarter2.62.43.7
4th quarter2.22.12.8
20151st quarter3.02.74.1
2nd quarter3.03.32.0
3rd quarter2.42.42.6
4th quarter2.11.63.7
Change on the previous quarter in % 2
20131st quarter0.4–0.12.5
2nd quarter–0.50.2–2.8
3rd quarter–0.1–0.1–0.4
4th quarter1.41.31.6
20141st quarter0.00.2–0.4
2nd quarter0.70.32.2
3rd quarter0.60.70.3
4th quarter0.90.90.7
20151st quarter0.80.81.0
2nd quarter0.60.80.1
3rd quarter0.1–0.20.9
4th quarter0.50.21.7

 

EU-wide comparison of labour costs
Change in industry and the service sector
Status of calculations: 3rd quarter of 2015 
European Union
Member States 
Index of labour
costs, total
Index of gross
earnings
Index of
non-wage costs
Change in 3rd quarter of 2015 on 3rd quarter of 2014 1
  in %

1 Calendar adjusted by means of the relevant national methods.
2 The figures for Greece refer to the 2nd quarter.

Source: Eurostat Online Database of 4 March 2016 and calculations by Destatis based on the Eurostat Online Database.
– not available

European Union1.82.01.1
Euro currency area1.11.40.1
Belgium0.10.10.1
Bulgaria7.47.67.1
Denmark1.71.62.3
Germany2.42.42.6
Estonia6.16.25.5
Finland0.60.31.5
France1.11.50.2
Greece 2–2.9
Ireland1.81.63.4
Italy–0.40.0–1.5
Croatia0.10.0–0.2
Latvia7.47.47.3
Lithuania5.76.05.1
Luxembourg–0.4–0.3–1.0
Malta1.41.6–0.7
Netherlands0.02.1–6.9
Austria0.70.80.1
Poland3.83.83.7
Portugal–2.8–2.5–3.9
Romania7.37.37.2
Sweden2.62.33.3
Slovakia2.93.12.4
Slovenia–1.5–1.6–1.1
Spain0.30.4–0.3
Czech Republic3.03.02.9
Hungary4.64.93.2
United Kingdom3.93.65.9
Cyprus–0.5–0.5–0.5

Detailed data and time series relating to the labour cost indices by branches of economic activity can be called up free of charge via table 62421-0001 in the GENESIS-Online database.

Data for European comparisons are available under Europe in Figures.

More on this topic