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EU – Labour costs rise in 2016, Denmark and Belgium have highest hourly labour costs

07 April 2017

Between 2015 and 2016, hourly labour costs in the whole economy expressed in euros rose by 1.6% in the EU and by 1.4% in the euro area, according to data from Eurostat, the statistical body of the EU.

In 2016, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €25.4 in the EU and €29.8 in the euro area.  However, according to the data, this average masks gaps between EU Member States, with the lowest hourly labour costs recorded in Bulgaria (€4.4), Romania (€5.5) and the highest in Denmark (€42.0), Belgium (€39.2).

In the industrial sector, labour costs per hour were €26.6 in the EU and €32.6 in the euro area, in services sector it was €25.8 and €28.7, respectively and in construction €23.3 and €26.1.

Labour costs are made up of wages & salaries and non-wage costs such as employers' social contributions. The share of non-wage costs in the whole economy was 23.9% in the EU and 26.0% in the euro area, ranging from 6.6% in Malta to 33.2% in France.

The data covers enterprises with 10 or more employees and are based on the Labour Cost Survey data for 2012, which are extrapolated through the Labour Cost Index.