Changes in labour costs in the 1st quarter of 2007

13.06.2007

Compared to 1st quarter of previous year, the average hourly labour costs 1) in the country in the 1st quarter of 2007, increased by 34.6%, according to data of Central Statistical Bureau. Hourly labour costs in this period increased from 2.08 lats to 2.80 lats or by 72 santims per hour.

In the public sector2) Hourly labour costs in the 1st quarter of this year were 3.18 lats and within a year they have increased 35.0% or by 82 santims per hour, in the private sector – 2.61 lat and the 35.2% increase or 68 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 1st quarter of this year was 2.21 lat and, compared to 1st quarter of 2006, they have increased by 34.2% or 56 santims per hour. Other labour costs were 0.59 lats per hour and in this period they have increased by 35.8% or by 16 santims per hour.

In the 1st quarter of 2007gross wages and salaries per one hour in the public sector were 2,49 lats (increase over 1st quarter of previous year – 34.4% or 64 santims per hour), but in private sector - 2,07 lats (increase over 1st quarter of previous year – 35.1% or 54 santims per hour). In the 1st quarter of this year other labour costs in the public sector were 0,69 lats and, in comparison with 1st quarter of 2006, they have increased by 37.4% or 19 santims per hour, but in private sector – 0.54 lats, comprising an increase of 35.5% or 14 santims per hour.

In the 1st quarter of 2007, the highest hourly labour costs were in financial intermediation – 6.67 lats, in electricity, gas and water supply – 4.40 lats and in public administration and defence; compulsory social security - 4.02 lats. Compared to the 1st quarter of previous year, the highest increase was in the electricity, gas and water supply – by 44.3% or by 1.35 lats per hour, in public, social and personal activities – by 42.7% or by 72 santims per hour, in agriculture, hunting and forestry – by 42.6% or by 76 santims per hour.

In the first quarter of 2007 within the regions the highest labour costs were in Riga – 3.18 lats per hour, as well as in the region of Pieriga – 2.66 lats. Compared to 1st quarter of previous year hourly labour costs most rapidly increased in the regions of Kurzeme and Zemgale – respectively by 35.9% and 35.6%, but the lowest increase was in the region of Latgale – by 32.4%.

 

Hourly labour costs
(in lats)

 

 

I quart. 2006

II quart. 2006

III quart. 2006

IV quart. 2006

I quart 2007

Total in the country

 

labour costs total

2.078

2.456

2.566

2.763

2.796

  

gross wages and salaries

1.644

1.950

2.045

2.174

2.206

  

other labour costs

0.434

0.506

0.521

0.589

0.590

Of which:

In public sector 2)

 

labour costs total

2.356

2.980

3.263

3.449

3.181

  

gross wages and salaries

1.856

2.351

2.586

2.669

2.493

  

other labour costs

0.500

0.629

0.677

0.781

0.688

In private sector

 

labour costs total

1.931

2.197

2.265

2.419

2.611

  

gross wages and salaries

1.531

1.750

1.810

1.925

2.069

  

other labour costs

0.400

0.447

0.455

0.494

0.542

 

Hourly labour cost increase over corresponding period of previous year
(in per cent)

 

 

I quart. 2006

II quart. 2006

III quart. 2006

IV quart. 2006

I quart 2007

Total in the country

 

labour costs total

14.6

24.0

23.9

28.5

34.6

  

gross wages and salaries

14.8

24.2

24.1

28.8

34.2

  

other labour costs

14.1

23.2

23.1

27.5

35.8

Of which:

In public sector 2)

 

labour costs total

14.0

23.6

23.6

31.9

35.0

  

gross wages and salaries

14.2

23.4

23.7

31.3

34.4

  

other labour costs

13.5

24.3

23.2

33.9

37.4

In private sector

 

labour costs total

16.0

25.3

25.5

27.4

35.2

  

gross wages and salaries

16.0

25.7

25.7

28.2

35.1

  

other labour costs

15.9

24.1

24.9

24.6

35.5

Hourly labour costs by kind of activity
(in lats)

 

 

1st quarter of 2006

1st quarter of 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

2.078

1.644

0.434

2.796

2.206

0.590

Agriculture, hunting and forestry (A)

1.781

1.409

0.373

2.541

1.998

0.543

Fishery a (B)

1.495

1.186

0.309

2.031

1.614

0.416

All industries, except Agriculture and forestry (C-O)

2.086

1.650

0.436

2.802

2.212

0.591

Industry and services– total(C-K)

2.051

1.617

0.433

2.748

2.165

0.583

Industry – total(CDE)

2.000

1.557

0.443

2.705

2.109

0.595

 

Mining and quarrying (C)

2.310

1.824

0.486

3.108

2.455

0.652

 

Manufacturing (D)

1.886

1.481

0.405

2.531

1.989

0.541

 

Electricity, gas and water supply

3.050

2.255

0.796

4.402

3.270

1.132

Construction (F)

1.884

1.492

0.392

2.642

2.089

0.553

Wholesale, retail sale, repair of motor vehicles, motorcycles, personal, household goods (G)

1.683

1.339

0.344

2.303

1.830

0.474

Hotels and restaurants (H)

1.276

1.017

0.259

1.758

1.398

0.360

Transport, storage and communications (I)

2.384

1.862

0.522

2.996

2.326

0.670

 

Land transport, transport via pipeline (60)

1.895

1.481

0.415

2.381

1.843

0.537

 

Water transport (61)

5.508

4.922

0.586

5.384

4.746

0.639

 

Air transport (62)

7.252

5.765

1.486

8.831

7.064

1.767

 

Transport auxiliary and ancillary activities of tourism agencies (63)

2.577

2.011

0.567

3.475

2.716

0.759

 

Post and telecommunications (64)

3.283

2.523

0.760

3.854

2.925

0.929

Financial intermediation (J)

5.360

4.283

1.077

6.668

5.285

1.383

Real estate, renting, computer services, science and business activities (K)

2.179

1.734

0.444

2.967

2.360

0.607

Public administration and defence; compulsory social security; education; Health and social work; Public, social and personal activities (L-O)

2.164

1.722

0.441

2.925

2.318

0.607

Public administration and defence; compulsory social security; (L)

2.905

2.287

0.618

4.021

3.156

0.866

Education (M)

1.937

1.552

0.385

2.474

1.973

0.500

Health and social work (N)

1.967

1.570

0.397

2.743

2.179

0.564

Public, social and personal activities (O)

1.680

1.351

0.328

2.397

1.912

0.485

 

of which
recreational, culture and sports activities(92)

1.724

1.380

0.344

2.461

1.967

0.494

 

Hourly labour costs by regions
(in lats)

 

 

I quart. 2006

II quart. 2006

III quart. 2006

IV quart. 2006

I quart. 2007

Latvia

 

labour costs total

2.078

2.456

2.566

2.763

2.796

  

gross wages and salaries

1.644

1.950

2.045

2.174

2.206

  

other labour costs

0.434

0.506

0.521

0.589

0.590

Of which:

Riga

 

labour costs total

2.386

2.800

2.913

3.151

3.182

  

gross wages and salaries

1.884

2.221

2.321

2.478

2.505

  

other labour costs

0.502

0.579

0.592

0.673

0.676

Pieriga region

 

labour costs total

1.966

2.339

2.458

2.638

2.657

  

gross wages and salaries

1.559

1.862

1.963

2.090

2.100

  

other labour costs

0.407

0.477

0.495

0.548

0.557

Vidzeme region

 

labour costs total

1.610

1.939

2.048

2.155

2.170

  

gross wages and salaries

1.280

1.545

1.636

1.690

1.725

  

other labour costs

0.330

0.395

0.413

0.465

0.445

Kurzeme region

 

labour costs total

1.703

2.004

2.107

2.197

2.315

  

gross wages and salaries

1.349

1.592

1.678

1.733

1.830

  

other labour costs

0.354

0.412

0.429

0.464

0.484

Zemgale region

 

labour costs total

1.659

1.982

2.041

2.299

2.249

  

gross wages and salaries

1.318

1.579

1.629

1.811

1.788

  

other labour costs

0.341

0.403

0.411

0.487

0.461

Latgale region

 

labour costs total

1.503

1.795

1.905

2.024

1.989

  

gross wages and salaries

1.193

1.425

1.517

1.583

1.576

  

other labour costs

0.310

0.370

0.388

0.441

0.413

 

 

Increase of hourly labour costs in comparison with
corresponding period of previous year by regions

(in per cent)

 

 

I quart. 2006

II quart. 2006

III quart. 2006

IV quart. 2006

I quart. 2007

Latvia

 

labour costs total

14.6

24.0

23.9

28.5

34.6

  

gross wages and salaries

14.8

24.2

24.1

28.8

34.2

  

other labour costs

14.1

23.2

23.1

27.5

35.8

Of which:

Riga

 

labour costs total

16.0

25.4

24.5

28.7

33.4

  

gross wages and salaries

16.1

25.6

24.7

28.7

33.0

  

other labour costs

15.9

24.4

23.5

28.5

34.8

Pieriga regions

 

labour costs total

15.9

28.1

28.4

33.3

35.2

  

gross wages and salaries

16.1

28.2

28.5

34.0

34.7

  

other labour costs

14.9

27.8

27.7

30.5

36.8

Vidzeme region

 

labour costs total

13.0

21.6

21.0

26.9

34.8

  

gross wages and salaries

13.4

21.7

21.3

27.0

34.8

  

other labour costs

11.8

21.1

19.9

26.6

35.0

Kurzeme region

 

labour costs total

10.0

17.5

22.0

22.9

35.9

  

gross wages and salaries

10.4

17.7

21.9

23.4

35.7

  

other labour costs

8.5

16.8

22.4

20.8

36.7

Zemgale region

 

labour costs total

13.8

21.6

21.8

29.9

35.6

  

gross wages and salaries

14.1

21.7

21.9

30.8

35.7

  

other labour costs

12.5

21.0

21.5

26.9

35.1

Latgale region

 

labour costs total

11.4

20.0

19.9

27.5

32.4

  

gross wages and salaries

11.7

19.9

20.4

28.6

32.1

  

other labour costs

10.0

20.4

18.1

23.8

33.3

___________________
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.

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.

Prepared by the Wage Statistics Section
Tel. 7366666
Ervīns Rekke