Changes in labour costs in the 3rd quarter of 2008

12.12.2008

Compared to the 2nd quarter in the 3rd quarter of 2008 hourly labour costs1) in the country increased by 4.5% (seasonally adjusted data2)), but compared to the 3rd quarter of previous year – by 21.4%, according to the data of Central Statistical Bureau.

It should be noted that, labour cost increase rate since the 4th quarter of 2007 continues to reduce.

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

 

 

Compared to the 2nd quarter the lowest growth of hourly labour costs (seasonally adjusted data) in the 3rd quarter of this year was recorded in public administration and financial intermediation – 1.2%, but the highest increase was observed in education – 7.1%, in electricity, gas and water supply – 6.3%, as well as in real estate, renting and business activities – 5.7%, and community, social and personal service activities – 5.6%.

Compared to the 3rd quarter of previous year the lowest growth of labour costs in the 3rd quarter of this year was in public administration – 12.7% and in financial intermediation – 14.8%. But the most rapid increase of labour costs was in education – 29.8%, electricity, gas and water supply – 25.8%, transport, storage and communication – 24.7%, hotel and restaurant sector – 23.7%, and in community, social and personal service activities – by 22.2%.

 

Changes of hourly labour costs in the 3rd quarter of 2008 by main kind of economic activity (seasonally adjusted data)

 

 

Changes as % of

2nd quarter 2008

3rd quarter 2007

Total

4.5

21.4

Mining and quarrying

3.4

21.5

Manufacturing

4.3

21.5

Electricity, gas and water supply

6.3

25.8

Construction

2.5

17.9

Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods

4.3

21.5

Hotels and restaurants

4.0

23.7

Transport, storage and communications

4.1

24.7

Financial intermediation

1.2

14.8

Real estate, renting and business activities

5.7

21.4

Public administration and defence; compulsory social security

1.2

12.7

Education

7.1

29.8

Health and social work

4.8

21.3

Community, social and personal service activities

5.6

22.2


The highest hourly labour costs (seasonally adjusted data) in the 3rd quarter of this year were in financial intermediation - 7.69 lats, in electricity, gas and water supply – 7.06 lats, and in public administration - 6.15 lats.

The lowest labour costs were in the field of hotels and restaurants – 2.44 lats per hour, in trade – 3.26 lats per hour, in construction – 3.55 lats per hour, as well as in manufacturing - 3.61 lats per hour.

Hourly labour costs by main kind of economic activity in the 3rd quarter of 2007 and 2008(lats, seasonally adjusted 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 communications;  
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) Labour costs include gross wages and salaries, wages and salaries in kind, statutory social security contributions payable by employer, employer’s voluntary social security contributions, employer's benefits, gifts and gratuities, payments for sick list A, severance pay, remuneration in the event of short-time working, entrepreneurship state risk duty. Labour costs do not include state granted subsidies on remuneration. 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.

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

Prepared by Wages Statistics Section
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