Press release No. 194 of 9 June 2016
WIESBADEN – In Germany, labour costs per hour worked rose by 3.1% in the first quarter of 2016 on a calendar adjusted basis, compared with the first quarter of 2015. The Federal Statistical Office (Destatis) also reports that, compared with the previous quarter, labour costs were up 1.7% in seasonally and calendar adjusted terms.
Labour costs consist of gross earnings and non-wage costs. In calendar adjusted terms, the costs of gross earnings in the first quarter of 2016 rose by 3.2% on the first quarter of 2015, while non-wage costs were up 2.7%.
For 2015, rates of labour cost change in industry and the service sector are available for almost all European Union (EU) Member States. According to those results, the price of one hour worked in Germany rose a calendar adjusted 2.6% compared with a year earlier. In the entire EU, the increase in labour costs averaged 2.0% in that period. Hence the rise recorded in Germany was above the EU average for the fifth year in a row. The highest growth rates within the EU were recorded in Romania (+8.4%), Latvia (+7.4%) and Bulgaria (+6.7%). In Cyprus (–0.9%) and Italy (–0.2%), labour costs declined. In France, the increase in labour costs (+1.1%) was markedly smaller than in Germany, the main reason being a very modest increase in non-wage costs. In Belgium, labour costs remained nearly unchanged (+0.1%).
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.
Revisions in the data sources used for calculating the labour cost index led to adjustments of the growth rates of the labour cost index for two quarters of the reference year 2015. For instance, the calendar adjusted year-on-year rate of increase in the labour cost index changed from +2.0% to +2.1% for the fourth quarter of 2015.
| 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 | 0.7 | 1.8 | –2.9 | |
| 2008 | 2.3 | 2.9 | 0.6 | |
| 2009 | 2.7 | 2.5 | 3.5 | |
| 2010 | 1.1 | 0.6 | 3.2 | |
| 2011 | 2.9 | 2.9 | 2.7 | |
| 2012 | 3.2 | 3.5 | 2.1 | |
| 2013 | 1.7 | 1.6 | 1.9 | |
| 2014 | 1.9 | 1.9 | 1.9 | |
| 2015 | 2.6 | 2.5 | 3.1 | |
| Change on the same quarter a year earlier in % 1 | ||||
| 2014 | 1st quarter | 0.7 | 1.4 | –1.9 |
| 2nd quarter | 2.1 | 1.8 | 3.2 | |
| 3rd quarter | 2.6 | 2.4 | 3.7 | |
| 4th quarter | 2.2 | 2.1 | 2.8 | |
| 2015 | 1st quarter | 3.0 | 2.7 | 4.1 |
| 2nd quarter | 3.0 | 3.3 | 1.9 | |
| 3rd quarter | 2.5 | 2.4 | 2.6 | |
| 4th quarter | 2.0 | 1.6 | 3.7 | |
| 2016 | 1st quarter | 3.1 | 3.2 | 2.7 |
| Change on the previous quarter in % 2 | ||||
| 2014 | 1st quarter | –0.1 | –0.1 | –0.3 |
| 2nd quarter | 0.8 | 0.4 | 2.2 | |
| 3rd quarter | 0.7 | 0.8 | 0.2 | |
| 4th quarter | 0.9 | 1.0 | 0.6 | |
| 2015 | 1st quarter | 0.6 | 0.5 | 1.1 |
| 2nd quarter | 0.7 | 0.9 | 0.0 | |
| 3rd quarter | 0.2 | 0.0 | 0.9 | |
| 4th quarter | 0.5 | 0.1 | 1.6 | |
| 2016 | 1st quarter | 1.7 | 2.1 | 0.2 |
| Index of labour costs, total | Index of labour costs, total | Index of gross earnings | Index of non-wage costs |
|---|---|---|---|
| Change in 2015 on 2014 1 | |||
| in % | |||
1 Calendar adjusted by means of the relevant national methods. Source: Eurostat Online Database of 3 June 2016 and calculations by Destatis based on the Eurostat Online Database. | |||
| European Union 2 | 2.0 | 2.2 | 1.4 |
| Euro currency area 2 | 1.5 | 1.8 | 0.6 |
| Belgium | 0.1 | 0.1 | 0.1 |
| Bulgaria | 6.7 | 6.9 | 5.9 |
| Denmark | 1.7 | 1.6 | 2.0 |
| Germany | 2.6 | 2.5 | 3.1 |
| Estonia | 5.2 | 5.3 | 5.1 |
| Finland | 1.3 | 1.1 | 2.2 |
| France | 1.1 | 1.5 | 0.3 |
| Ireland | 0.8 | 0.7 | 1.2 |
| Italy | –0.2 | 0.1 | –1.0 |
| Croatia | 1.5 | 1.6 | 1.6 |
| Latvia | 7.4 | 7.5 | 7.3 |
| Lithuania | 5.2 | 5.4 | 4.6 |
| Luxembourg | 0.5 | 0.5 | 0.0 |
| Malta | 3.1 | 3.3 | 1.2 |
| Netherlands | 0.9 | 3.2 | –6.8 |
| Austria | 2.6 | 2.8 | 2.2 |
| Poland | 3.5 | 3.5 | 3.6 |
| Portugal | 1.8 | 1.5 | 2.7 |
| Romania | 8.4 | 8.4 | 8.3 |
| Sweden | 2.9 | 2.3 | 4.2 |
| Slovakia | 3.7 | 3.9 | 3.1 |
| Slovenia | 1.0 | 0.7 | 2.5 |
| Spain | 0.8 | 1.2 | –0.4 |
| Czech Republic | 4.5 | 4.5 | 4.5 |
| Hungary | 3.8 | 4.1 | 2.7 |
| United Kingdom | 3.4 | 3.1 | 5.3 |
| Cyprus | –0.9 | –0.9 | –1.0 |