Changes in labour costs in the 2nd quarter of 2008

12.09.2008

Compared to the 1st quarter in the 2nd quarter of 2008 hourly labour costs1) in the country increased by 5.2% (seasonally adjusted data2), but compared to the 1st quarter of previous year – by 26.1%, according to the data of Central Statistical Bureau.

It should be noted that, since 4th quarter of 2007 labour cost increase rate is reducing.

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

Compared to the first quarter the highest increase of hourly labour costs in the second quarter of this year according to seasonally adjusted data was recorded in education, as well as in economic activities of hotels and restaurants – by 6.1%, but the lowest growth was observed in public administration – by 1.5%. In other kinds of economic activities growth constituted approximately four per cent: from 3.7% in trade to 4.6% in health and social care.

But decrease of hourly labour costs was recorded in the field of financial intermediation – by 9.3%. It may be explained with higher irregular payments in the 1st quarter of this year. Regular payments in this activity have grown by 2.9%.

Hourly labour costs slightly decreased also in real estate, renting and business activities – by 0.3%.

Compared to the second quarter of previous year the most rapid increase of hourly labour costs in second quarter of this year according to seasonally adjusted data were in such economic activities as education – increase of 30.5%, hotels and restaurants – 29.3%, mining and quarrying – 27.7%, construction – 27.4%, and trade – 27.3%. But the lowest growth of hourly labour costs was recorded in electricity, gas and water supply - 16.5%.

Changes of hourly labour costs in the 2nd quarter of 2008 by main kind of economic activity (seasonally adjusted data)

 

 

Changes as % of

1st quarter 2008

2nd quarter 2007

Total (C – O)

5.2

26.1

Mining and quarrying (C)

4.0

27.7

Manufacturing (D)

4.5

24.3

Electricity, gas and water supply (E)

4.0

16.5

Construction (F)

4.4

27.4

Wholesale and retail trade;

repair of motor vehicles, motorcycles and personal and household goods (G)

3.7

27.3

Hotels and restaurants (H)

6.1

29.3

Transport, storage and communications (I)

4.1

26.9

Financial intermediation (J)

-9.3

19.1

Real estate, renting and business activities (K)

-0.3

27.1

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

1.5

20.8

Education (M)

6.1

30.5

Health and social work (N)

4.6

21.8

Community, social and personal service activities (O)

4.2

26.3

The highest hourly labour costs (seasonally unadjusted data) in the second quarter of this year were in financial intermediation - 8.18 lats, in public administration – 6.08 lats, and in electricity, gas and water supply - 5.96 lats.

The lowest labour costs were in the field of hotels and restaurants – 2.45 lats per hour, in trade – 3.29 lats, in manufacturing – 3.51 lat, as well as in the sphere of other community, social and personal service activities - 3.52 lats per hour.

Hourly labour costs by main kind of economic activity in the 2nd quarter of 2007 and 2008 (lats, seasonally unadjusted data)

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 Community, social and personal service activities

 

1) Data on agriculture, forestry and fishing are not included.

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.

Both seasonally adjusted and seasonally not adjusted data are available in the data base of the Central Statistical Bureau.

Prepared by the Wages Statistics Section
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