Changes in labour costs in the 2nd quarter of 2009

14.09.2009

Compared to the 2nd quarter of the previous year hourly labour costs in the country in the 2nd quarter of 2009 grew by 18 santims or by 4.4% (seasonally non-adjusted data), according to the data of Central Statistical Bureau. But according to seasonally adjusted1) data they increased by 2.1%.


 

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



Growth of hourly labour costs was influenced by the increase of those costs related to the dismissal of the employees - compensation for unused leave and severance pay. More explicitly it was observed in electricity, gas, steam and air conditioning supply field, as well as in education.



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

 

 

2nd quarter
2008

2nd quarter 2009

Changes, %

Total excluding agriculture and fishing

4.01

4.18

4.4

Mining and quarrying

4.23

4.11

-2.9

Manufacturing

3.47

3.67

5.8

Electricity, gas, steam and air conditioning supply

5.52

6.77

22.6

Water supply; sewerage, waste management and remediation activities

3.99

4.24

6.3

Construction

3.64

3.79

4.0

Wholesale and retail trade;

repair of motor vehicles and motorcycles

3.31

3.34

0.9

Transportation and storage

4.13

4.57

10.5

Accommodation and food service activities

2.45

2.46

0.3

Information and communication

6.40

7.02

9.7

Financial and insurance activities

8.26

8.59

3.9

Real estate activities

3.13

3.18

1.6

Professional, scientific and technical activities

4.62

4.94

7.0

Administrative and support service activities

3.56

3.47

-2.5

Public administration and defence; compulsory social security

6.21

5.32

-14.3

Education

3.96

4.27

7.9

Human health and social work activities

3.99

3.91

-2.0

Arts, entertainment and recreation

3.51

3.50

-0.3

Other service activities

2.28

2.72

19.7




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 2nd quarter of the last year the number of hours worked in the 2nd quarter of 2009 reduced by 23.3%, but labour costs during this time period decreased by 19.9%.



Labour costs, hours worked and their changes in the 2nd quarter of 2009 (seasonally un-adjusted data)

 

 

2nd quarter
2008

2nd quarter
2009

Changes, %

Labour costs, total, mln LVL

1612.7

1291.0

-19.9

 

of which

   
 

wages and salaries

1280.4

1014.6

-20.8

 

other labour costs

332.3

276.4

-16.8

Hours worked, mln

402.7

308.7

-23.3

Total hourly labour costs, LVL

4.01

4.18

4.4

 

of which

   
 

Hourly wages and salaries

3.18

3.29

3.4

 

other hourly labour costs

0.83

0.90

8.5


 

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

 

1) Influence of seasonality and varying number of working days has been averted.



Explanations

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, state 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.

Hourly labour costs are calculated dividing the sum of labour costs with number of hours actually worked.

This information does not include data on agriculture, forestry and fishing.




Prepared byWages Statistics Section
Ervins Rekke
Tel. 67366666