On changes of labour costs in 2007 and in 4th quarter of 2007

14.03.2008

Compared to 2006, in 2007 average hourly labour costs1) in the country increased from 2.46 to 3.25 lats or by 31.7%, of which in public sector 2) – from 3.00 to 4.04 lats or by 34.8%, but in private sector - from 2.20 to 2.89 lats or by 31.1%, according to the data of the Central Statistical Bureau.

In 2007 the highest hourly labour costs were recorded in the sector of financial intermediation - 6.92 lats, of electricity, gas and water supply and of public administration - 5.09 lats. The lowest labour costs were observed in sectors like hotels and restaurants – 1.92 lats per hour, fishery – 2.22 lats and trade – 2.61 lats, what constitutes 59%, 68% and 80% of the average labour costs in the country, respectively. Compared to 2006, the most noticeable increase was recorded in fishery – 73 santims per hour or growth of 48.6%, in the field of public, social and personal activities - 84 santims or 41.0%, in agriculture, hunting and forestry – rise of 80 santims or 39.7%, as well as in health and social care – 89 santims per hour or 38.0%.

 

Hourly labour costs by kind of economic activity in 2006 and 2007

 A Agriculture, hunting and forestry; B Fishery; C Mining and quarrying; D Manufacturing; E Electricity, gas and water supply; F Construction; G Trade; repair of motor vehicles, motorcycles, personal, household goods; H Hotels and restaurants; I Transport, storage and communication; J Financial intermediation; K Commercial services; L Public administration and defence; M Education; N Health and social work; O Public, social and personal activities.

Compared to 4th quarter of 2006, in the fourth quarter of 2007 hourly labour costs has increased by 86 santims per hour or by 31.0%. In the public sector2) hourly labour costs in the 4th quarter of 2007 were 4.60 lats and within a year they have increased by 1.15 lats per hour or by 33.3%, in the private sector – 3.16 lats and the increase reached 74 santims per hour or 30.7%.

 

Increase of hourly labour costs against the corresponding period of previous year
in public2) and private sector

In 2007 among the regions of the country the highest hourly labour costs were observed in Riga – 3.66 lats per one hour worked, as well as, in the region of Pieriga – 3.13 lats, but the lowest hourly labour costs, in turn, were recorded in the region of Latgale – 2.35 lats per hour. Compared to previous year, the most rapid rise of the hourly labour costs was in the region of Kurzeme – by 35.0%, in region of Zemgale – 33.4%, and in the region of Pieriga – by 33.2%, but the smallest growth was in Riga – by 30.1% and in the region of Latgale – by 30.4%.

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1) Labour costs are employer’s expenditures that are necessary for employing workforce. Labour costs include gross wages and salaries and other direct and indirect employer’s payments to the employee - statutory social security contributions, 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.

In 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.

 

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. Information does not include the data on foundations, associations, and funds and commercial companied thereof.

 

The changes of hourly labour costs are calculated not taking into account the changes of the number of working days and seasonal influence. Seasonally adjusted and non-adjusted data are in the data bases of the web page of the Central Statistical Bureau www.csb.gov.lv, in the section Labour costs.

Information by kind of activity has been compiled by the main kind of activity of the commercial company, individual merchant or institution.

Information by regions has been compiled according to the location of the bureau of the individual merchant, institution, foundation, association or fund.

Prepared by Wages Statistics Section
Tel. 67366917
Lija Luste