On changes of labour costs in 1st quarter of 2009

15.06.2009

Compared to the 4th quarter of 2008 hourly labour costs in the country1) in the 1st quarter of 2009 reduced from LVL 4.18 to LVL 3.83 or by 35 santims, according to the data of Central Statistical Bureau. Compared to the 1st quarter of previous year they grew by 16 santims.
 

 

Hourly labour costs and their changes in the 1st quarter of 2009 by kind of economic activity (seasonally unadjusted data, by NACE Rev. 2 classification)

 

Hourly labour costs, LVL

1st quarter
2008

4th quarter 2008

1st quarter 2009

Total excluding agriculture and fishing

3.67

4.18

3.83

Mining and quarrying

4.12

4.77

4.10

Manufacturing

3.19

3.61

3.44

Electricity, gas, steam and air conditioning supply

4.64

5.58

4.74

Water supply; sewerage, waste management and remediation activities

3.55

4.35

3.81

Construction

3.44

3.83

3.87

Wholesale and retail trade; repair of motor vehicles and motorcycles

3.06

3.33

3.24

Transportation and storage

3.65

4.33

4.08

Accommodation and food service activities

2.30

2.43

2.32

Information and communication

6.33

6.76

6.59

Financial and insurance activities

9.22

8.63

8.50

Real estate activities

2.86

3.20

2.90

Professional, scientific and technical activities

4.23

4.78

4.52

Administrative and support service activities

3.21

3.70

3.35

Public administration and defence; compulsory social security

5.40

6.07

4.84

Education

3.38

4.57

3.56

Human health and social work activities

3.56

3.98

3.47

Arts, entertainment and recreation

3.21

3.66

3.10

Other service activities

2.16

2.47

2.49


Compared to the 4th quarter of 2008, hourly labour costs in the country in the 1st quarter of this year increased by 0.2% (according to seasonally adjusted data2)), but compared to the 1st quarter of previous year – by 8.0%.

 

 

 

Changes of hourly labour costs over corresponding quarter of previous year, %

 


Due to the rapid reduction of the number of employees and due to the fact that part of them changed their working time from full-time to part-time work, compared to the 1st quarter of the last year number of hours worked in the 1st quarter of 2009 reduced by 14.2%. Labour costs during this time period decreased by 10.4%, but if compared to the 4th quarter of the last year – by 17.5%.

 

Labour costs, hours worked and their changes in the 1st quarter of 2009 (seasonally unadjusted data)

 

 

1st quarter 2008

4th quarter 2008

1st quarter 2009

Changes as % of

4th quarter 2008

1st quarter 2008

Labour costs, total, mln LVL

1518.3

1648.3

1360.0

-17.5

-10.4

 

of which

 

 

 

 

 

 

wages and salaries

1200.4

1296.2

1069.2

-17.5

-10.9

 

other labour costs

317.9

352.1

290.7

-17.4

-8.5

Hours worked, mln

414.2

393.9

355.2

-9.8

-14.2

Total hourly labour costs, LVL

3.67

4.18

3.83

-8.5

4.5

 

of which

 

 

 

 

 

 

Hourly wages and salaries

2.90

3.29

3.01

-8.5

3.9

 

other hourly labour costs

0.77

0.89

0.82

-8.4

6.7


Both seasonally adjusted and seasonally not adjusted data are available in the data base of the Central Statistical Bureau: See here

 

 

Prepared byWages Statistics Section
Ervins Rekke
Tel. 67366666

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1) Hourly labour costs include gross wages and salaries and other labour costs. Wages and salaries are regular and irregular direct wages and salaries – basic salary (monthly, wage), payment for time worked or job completed, regular and irregular premiums and bonuses, payments for days not worked (vocation and other days not worked), sums of state mandatory social insurance contributions paid by the employees and personal tax. In accordance with the EU regulatory enactments when compiling data on labour costs wages and salaries include also wages and salaries in kind (goods and services provided by the employer to employees for free or for a lower price, living area, mobile telephone, transportation compensation, etc.). Other labour costs include state mandatory social security contributions, voluntary social security contributions (additional pension, health, life insurance contributions, etc) paid by the employer, employer’s allowances, awards, gifts, payment of sick list A, severance payment, business risk state duty.
This information does not include data on agriculture, forestry and fishing.

2) Influence of seasonality and varying number of working days has been averted.
Hourly labour costs are calculated dividing the sum of labour costs with number of hours actually worked.