14.09.2007
Changes in labour costs in the 2ndquarter of 2007
Compared to 2nd quarter of previous year, in the 2nd quarter of 2007 the average hourly labour costs 1) in the country increased by 31.6%, according to data of Central Statistical Bureau. Hourly labour costs in this period increased from 2.46 lats to 3.23 lats or by 78 santims per hour.
In the public sector2) hourly labour costs in the 2nd quarter of this year were 4.01 lats and within a year they have increased 34.5% or by 1.03 lats per hour, in the private sector – 2.88 lats and the 31.2% increase or 69 santims per hour.
The main components of labour costs are gross wages and salaries and other labour costs3). Gross wages and salaries per one hour in the 2nd quarter of this year was 2.57 lats and, compared to 2ndquarter of 2006, they have increased by 31.9% or 62 santims per hour. Other labour costs were 0.66 lats per hour and in this period they have increased by 30.4% or by 15 santims per hour.
In the 2nd quarter of 2007 gross wages and salaries per one hour in the public sector were 3.17 lats (increase over 2nd quarter of previous year – 31.5% or 82 santims per hour), but in private sector – 2.30 lats (increase over 2nd quarter of previous year – 35.1% or 55 santims per hour). In the 2nd quarter of this year other labour costs in the public sector were 0.83 lats and, in comparison with 2nd quarter of 2006, they have increased by 32.6% or 21 santims per hour, but in private sector – 0.58 lats, comprising an increase of 30.0% or 13 santims per hour.
In the 2nd quarter of 2007, the highest hourly labour costs were in financial intermediation – 6.94 lats, in public administration and defence; compulsory social security - 5.06 lats, in electricity, gas and water supply – 4.97 lats. Compared to the 2nd quarter of previous year, the highest increase was in public, social and personal activities – by 41% or by 83 santims per hour, in agriculture, hunting and forestry – by 40.6% or by santims per hour, health and social care - by 38.9% or by 93 santims per hour.
In the second quarter of 2007 within the regions the highest labour costs were in Riga – 3.63 lats per hour, as well as in the region of Pieriga – 3.14 lats. Compared to 2nd quarter of previous year hourly labour costs most rapidly increased in the regions of Kurzeme and Zemgale – respectively by 36.3% and 34.8%, but the lowest increase was in the region of Latgale – by 30.4%.
To compare the data of the first and second quarters of this year, it should be highlighted, that average hourly labour costs in the country have increased by 16.1%, of which gross wages and salaries – by 17.1%, other labour costs – by 12.6%.
Hourly labour costs
(in lats)
|
II quart. 2006 |
I quart. 20074) |
II quart. 2007 |
II quart. 2007 increase over I quart 2007, in % |
II quart. 2007 increase over II quart. 2006, in % |
|
Total in the country |
|
labour costs total |
2.456 |
2.783 |
3.231 |
16.1 |
31.6 |
|
|
gross wages and salaries |
1.950 |
2.197 |
2.572 |
17.1 |
31.9 |
|
|
other labour costs |
0.506 |
0.586 |
0.660 |
12.6 |
30.4 |
|
Of which: |
|
In public sector 2) |
|
labour costs total |
2.980 |
3.180 |
4.007 |
26.0 |
34.5 |
|
|
gross wages and salaries |
2.351 |
2.493 |
3.173 |
27.3 |
35.0 |
|
|
other labour costs |
0.629 |
0.687 |
0.834 |
21.4 |
32.6 |
|
In private sector |
|
labour costs total |
2.197 |
2.592 |
2.883 |
11.2 |
31.2 |
|
|
gross wages and salaries |
1.750 |
2.054 |
2.302 |
12.1 |
31.5 |
|
|
other labour costs |
0.447 |
0.537 |
0.581 |
8.2 |
30.0 |
Hourly labour costs by kind of activity
(in lats)
|
|
II quarter 2006 |
II 2007 |
|
labour costs total |
of which |
labour costs total |
of which |
|
gross wages and salaries |
other labour costs |
gross wages and salaries |
other labour costs |
|
Total |
2.456 |
1.950 |
0.506 |
3.231 |
2.572 |
0.660 |
|
Agriculture, hunting and forestry (A) |
1.952 |
1.549 |
0.402 |
2.744 |
2.171 |
0.573 |
|
Fishery a (B) |
1.462 |
1.154 |
0.308 |
2.472 |
1.975 |
0.497 |
|
All industries, except Agriculture and forestry (C-O) |
2.470 |
1.961 |
0.509 |
3.244 |
2.582 |
0.635 |
|
Industry and services– total(C-K) |
2.366 |
1.877 |
0.490 |
3.071 |
2.443 |
0.665 |
|
Industry – total(CDE) |
2.356 |
1.851 |
0.505 |
3.052 |
2.411 |
0.641 |
|
Mining and quarrying (C) |
2.515 |
2.001 |
0.514 |
3.408 |
2.727 |
0.681 |
|
Manufacturing (D) |
2.201 |
1.744 |
0.457 |
2.875 |
2.283 |
0.592 |
|
Electricity, gas and water supply |
3.965 |
2.954 |
1.011 |
4.971 |
3.784 |
1.188 |
|
Construction (F) |
2.181 |
1.741 |
0.440 |
2.977 |
2.379 |
0.598 |
|
Wholesale, retail sale, repair of motor vehicles, motorcycles, personal, household goods (G) |
1.932 |
1.542 |
0.390 |
2.591 |
2.072 |
0.520 |
|
Hotels and restaurants (H) |
1.475 |
1.180 |
0.295 |
1.916 |
1.534 |
0.383 |
|
Transport, storage and communications (I) |
2.733 |
2.145 |
0.588 |
3.489 |
2.746 |
0.744 |
|
Land transport, transport via pipeline (60) |
2.309 |
1.815 |
0.495 |
2.983 |
2.343 |
0.640 |
|
Water transport (61) |
6.435 |
5.779 |
0.656 |
5.131 |
4.525 |
0.606 |
|
Air transport (62) |
8.780 |
7.083 |
1.697 |
11.542 |
9.493 |
2.049 |
|
Transport auxiliary and ancillary activities of tourism agencies (63) |
2.994 |
2.363 |
0.631 |
4.035 |
3.193 |
0.842 |
|
Post and telecommunications (64) |
3.240 |
2.455 |
0.785 |
3.770 |
2.875 |
0.895 |
|
Financial intermediation (J) |
5.639 |
4.489 |
1.150 |
6.938 |
5.580 |
1.359 |
|
Real estate, renting, computer services, science and business activities (K) |
2.628 |
2.108 |
0.520 |
3.273 |
2.618 |
0.655 |
|
Public administration and defence; compulsory social security; education; Health and social work; Public, social and personal activities (L-O) |
2.718 |
2.164 |
0.554 |
3.669 |
2.923 |
0.746 |
|
Public administration and defence; compulsory social security; (L) |
3.749 |
2.945 |
0.804 |
5.058 |
4.003 |
1.055 |
|
Education (M) |
2.441 |
1.961 |
0.480 |
3.182 |
2.547 |
0.635 |
|
Health and social work (N) |
2.381 |
1.901 |
0.480 |
3.308 |
2.642 |
0.665 |
|
Public, social and personal activities (O) |
2.018 |
1.628 |
0.390 |
2.846 |
2.279 |
0.567 |
|
of which
recreational, culture and sports activities(92) |
2.109 |
1.691 |
0.418 |
2.957 |
2.372 |
1.055 |
Hourly labour costs by regions
(in lats)
|
II quart. 2006 |
I quart. 20074) |
II quart. 2007 |
II quart. 2007 increase over I quart 2007, in % |
II quart. 2007 increase over II quart. 2006, in % |
|
Latvia |
|
labour costs total |
2.456 |
2.783 |
3.231 |
16.1 |
31.6 |
|
|
gross wages and salaries |
1.950 |
2.197 |
2.572 |
17.1 |
31.9 |
|
|
other labour costs |
0.506 |
0.586 |
0.660 |
12.6 |
30.4 |
|
Of which: |
|
Riga |
|
labour costs total |
2.800 |
3.163 |
3.625 |
14.6 |
29.5 |
|
|
gross wages and salaries |
2.221 |
2.492 |
2.882 |
15.7 |
29.8 |
|
|
other labour costs |
0.579 |
0.671 |
0.743 |
10.7 |
28.3 |
|
Pieriga region |
|
labour costs total |
2.339 |
2.647 |
3.142 |
18.7 |
34.3 |
|
|
gross wages and salaries |
1.862 |
2.093 |
2.505 |
19.7 |
34.5 |
|
|
other labour costs |
0.477 |
0.554 |
0.637 |
15.0 |
33.5 |
|
Vidzeme region |
|
labour costs total |
1.939 |
2.160 |
2.562 |
18.6 |
32.1 |
|
|
gross wages and salaries |
1.545 |
1.716 |
2.045 |
19.2 |
32.4 |
|
|
other labour costs |
0.395 |
0.443 |
0.517 |
16.7 |
30.9 |
|
Kurzeme region |
|
labour costs total |
2.004 |
2.309 |
2.731 |
18.3 |
36.3 |
|
|
gross wages and salaries |
1.592 |
1.826 |
2.174 |
19.1 |
36.6 |
|
|
other labour costs |
0.412 |
0.483 |
0.557 |
15.3 |
35.2 |
|
Zemgale region |
|
labour costs total |
1.982 |
2.244 |
2.671 |
19.0 |
34.8 |
|
|
gross wages and salaries |
1.579 |
1.784 |
2.136 |
19.7 |
35.3 |
|
|
other labour costs |
0.403 |
0.460 |
0.535 |
16.3 |
32.8 |
|
Latgale region |
|
labour costs total |
1.795 |
1.982 |
2.341 |
18.1 |
30.4 |
|
|
gross wages and salaries |
1.425 |
1.570 |
1.866 |
18.9 |
30.9 |
|
|
other labour costs |
0.370 |
0.412 |
0.475 |
15.3 |
28.4 |
___________________
1) Labour costs are employer’s expenditures that are necessary for employing workforce. The main components of labour costs are gross wages and salaries and other labour costs. In total and in other labour costs data on state granted subsidies on remuneration are not included.
Average hourly labour costs are calculated dividing the sum of labour costs with number of hours actually worked. The main components of labour costs are calculated in the same way – Gross labour costs and other labour costs in the one worked hour.
The calculation of labour cost components and hourly labour costs corresponds to the European Parliament and Council Regulation (EC) No 450/2003 of 27 February 2003 on the labour cost index.
2) Public sector represents state and local government institutions and commercial companies of these institutions, as well as commercial companies with state or local government capital participation 50% and over and foundations, associations, funds and commercial companies thereof.
3) In Other labour costs are included: statutory social security contributions payable by employer, employers’ contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions etc.), support payments from employer, awards, gifts, payments for sick list A, severance pay, remuneration in the event of short-time working, entrepreneurship state risk duty. In labour costs vocational training costs are not included, as well as recruitment costs, costs for work appeal and uniforms, costs on for work necessary medical inspections and vaccination, costs for specific food and beverages.
The changes of hourly labour costs are calculated taking into account the changes of the number of working days and seasonal influence. Seasonally adjusted and not adjusted data on the country generally are in the home page of the Central Statistical Bureau - www.csb.gov.lv in the section Data bases – population income and labour costs - monthly/quarterly data.
4) Data are revised.
Prepared by the Wage Statistics Section
Ervīns Rekke
Tel. 6 7366666
ervins.rekke@csb.gov.lv
September 2007
