Changes in labour costs in the 3rdquarter of 2007

14.12.2007

In the 3rd quarter of 2007 the average hourly labour costs 1) in the country were 3.41 lats per hour, or an increase of 6.5% compared to the 2nd quarter, according to data of Central Statistical Bureau. In the public sector hourly labour costs in the 3rd quarter of this year have increased by 11.1%, but in the private sector – by 5.2%, compared to the 2nd quarter.

Compared to the 3rd quarter of the previous year hourly labour costs have increased by 32.9% or by 84 santims per hour. In the public sector2) hourly labour costs in the 3rd quarter of this year were 4.45 lats and within a year they have increased by 36.4% or by 1.19 lats per hour, in the private sector- 3.00 lats and 32.4% increase or 73 santims per hour.

The main components of labour costs are gross wages and salaries and other labour costs3). Gross wages and salaries per hour in the 3rd quarter of this year were 2.72 lats and, compared to 3rdquarter of 2006, they have increased by 32.8% or 67 santims per hour. Other labour costs were 0.69 lats per hour and in this period they have increased by 32.9% or by 17 santims per hour.

In the 3rd quarter of 2007 gross wages and salaries per hour in the public sector were 3.52 lats (increase over 3rd quarter of previous year – 36.2% or 94 santims per hour), but in private sector – 2.40 lats (increase over 3rd quarter of previous year – 32.6% or 59 santims per hour). In the 3rd quarter of this year other labour costs in the public sector were 0.93 lats and, in comparison with 3rd quarter of 2006, they have increased by 37.2% or 25 santims per hour, but in private sector – 0.60 lats, comprising an increase of 31.8% or 14 santims per hour.

In the 3rd quarter of 2007, the highest hourly labour costs were in financial intermediation – 6.73 lats, in electricity, gas and water supply – 5.60 lats, in public administration and defence; compulsory social security - 5.48 lats. Compared to the 3rd quarter of previous year, the highest increase was in fishery and related service activities – by 58.2% or by 81 santims per hour, in public, social and personal activities – by 45% or by 95 santims per hour, in agriculture, hunting and forestry – by 41.9% or by 84 santims per hour.

In the third quarter of 2007 within the regions the highest labour costs were in Riga – 3.85 lats per hour, as well as in the region of Pieriga – 3.27 lats. Compared to 3rd quarter of previous year hourly labour costs most rapidly increased in the Zemgale region – by 35.8%, in the regions of Kurzeme and Vidzeme – by 33.4%, but the lowest increase was in the region of Latgale – by 30.1%

 

Hourly labour costs
(in lats)

 

 

 

3rd quarter of 2006

 

1st quarter of 2007 4)

 

2nd quarter of 2007 4)

 

3rd quarter of 2007

3rd quarter of 2007 changes over 2nd quarter of 2007, in %

3rd quarter of 2007 changes over 3rd quarter of 2006, in %

Total

 

Labour costs total

2.566

2.763

3.200

3.409

6.5

32.9

  

Gross wages and salaries

2.045

2.182

2.547

2.717

6.7

32.8

  

Other labour costs

0.521

0.582

0.653

0.692

6.0

32.9

Of which:

In public sector 2)

 

Labour costs total

3.263

3.180

4.006

4.451

11.1

36.4

  

Gross wages and salaries

2.586

2.493

3.172

3.522

11.1

36.2

  

Other labour costs

0.677

0.687

0.834

0.929

11.3

37.2

In private sector

 

Labour costs total

2.265

2.569

2.851

2.999

5.2

32.4

  

Gross wages and salaries

1.810

2.036

2.276

2.400

5.4

32.6

  

Other labour costs

0.455

0.532

0.574

0.599

4.3

31.8

Hourly labour costs by kind of activity
(in lats)

 

 

3rd quarter of 2006

3rd quarter of 2007

Labour costs total

Of which

Labour costs total

Of which

Gross wages and salaries

Other labour costs

Gross wages and salaries

Other labour costs

Total

2.566

2.045

0.521

3.409

2.717

0.692

Agriculture, hunting and forestry (A)

1.994

1.581

0.413

2.829

2.247

0.582

Fishery (B)

1.388

1.094

0.295

2.196

1.756

0.440

All industries, except Agriculture and fishery (C-O)

2.583

2.059

0.524

3.424

2.729

0.695

Industry and services– total(C-K)

2.427

1.931

0.497

3.162

2.522

0.640

Industry – total(CDE)

2.515

1.979

0.536

3.206

2.537

0.669

 

Mining and quarrying (C)

2.599

2.069

0.530

3.297

2.627

0.671

 

Manufacturing (D)

2.313

1.839

0.474

2.999

2.386

0.614

 

Electricity, gas and water supply (E)

4.646

3.444

1.202

5.595

4.282

1.313

Construction (F)

2.287

1.826

0.461

3.084

2.455

0.629

Wholesale, retail sale,
repair of motor vehicles, motorcycles, personal, household goods (G)

1.960

1.566

0.394

2.697

2.157

0.540

Hotels and restaurants (H)

1.500

1.202

0.298

1.989

1.588

0.401

Transport, storage and communication (I)

2.743

2.162

0.581

3.335

2.636

0.699

 

Land transport;
transport via pipeline (60)

2.333

1.834

0.499

2.731

2.150

0.581

 

Water transport (61)

4.863

4.349

0.514

4.735

4.290

0.445

 

Air transport (62)

8.086

6.760

1.325

11.835

10.220

1.615

 

Transport auxiliary and
ancillary activities of tourism agencies (63)

3.000

2.365

0.635

3.916

3.085

0.831

 

Post and telecommunications (64)

3.274

2.528

0.746

3.878

2.976

0.902

Financial intermediation (J)

5.368

4.336

1.032

6.730

5.434

1.297

Real estate, renting, computer services, science and business activities (K)

2.659

2.140

0.519

3.508

2.835

0.673

Public administration and defence;
education; Health and social work; Public, social and personal activities (L-O)

3.009

2.411

0.599

4.174

3.321

0.853

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

3.872

3.068

0.804

5.484

4.321

1.163

Education (M)

3.111

2.514

0.597

4.148

3.324

0.823

Health and social work (N)

2.476

1.984

0.492

3.406

2.722

0.683

Public, social and personal activities (O)

2.115

1.713

0.402

3.067

2.455

0.612

 

Of which recreational, culture and sports activities(92)

2.215

1.781

0.434

3.249

2.610

0.640

 

Hourly labour costs by regions
(in lats)

 

 

 

3rd quarter of 2006

 

1st quarter of 2007 4)

 

2nd quarter of 2007 4)

 

3rd quarter of 2007

3rd quarter of 2007 changes over 2nd quarter of 2007, in %

3rd quarter of 2007 changes over 3rd quarter of 2006, in %

Latvia

 

Labour costs total

2.566

2.763

3.200

3.409

6.5

32.9

  

Gross wages and salaries

2.045

2.182

2.547

2.717

6.7

32.8

  

Other labour costs

0.521

0.582

0.653

0.692

6.0

32.9

Of which:

Riga

 

Labour costs total

2.913

3.139

3.588

3.849

7.3

32.1

  

Gross wages and salaries

2.321

2.473

2.853

3.066

7.5

32.1

  

Other labour costs

0.592

0.666

0.735

0.783

6.5

32.3

Pieriga region

 

Labour costs total

2.458

2.622

3.102

3.268

5.3

33.0

  

Gross wages and salaries

1.963

2.073

2.474

2.606

5.3

32.8

  

Other labour costs

0.495

0.549

0.629

0.662

5.3

33.8

Vidzeme region

 

Labour costs total

2.048

2.151

2.545

2.732

7.4

33.4

  

Gross wages and salaries

1.636

1.709

2.032

2.184

7.5

33.5

  

Other labour costs

0.413

0.441

0.513

0.548

6.9

32.9

Kurzeme region

 

Labour costs total

2.107

2.293

2.706

2.810

3.8

33.4

  

Gross wages and salaries

1.678

1.814

2.155

2.243

4.1

33.7

  

Other labour costs

0.429

0.480

0.552

0.567

2.7

32.0

Zemgale region

 

Labour costs total

2.041

2.230

2.642

2.770

4.9

35.8

  

Gross wages and salaries

1.629

1.773

2.113

2.215

4.8

35.9

  

Other labour costs

0.411

0.457

0.529

0.556

5.0

35.0

Latgale region

 

Labour costs total

1.905

1.973

2.324

2.478

6.6

30.1

  

Gross wages and salaries

1.517

1.563

1.852

1.971

6.4

29.9

  

Other labour costs

0.388

0.410

0.472

0.507

7.5

30.7

_________________
1) Labour costs are employer’s expenditures that are necessary for employing workforce. The main components of labour costs are gross wages and salaries and other labour costs. In total and in other 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. The main components of labour costs are calculated in the same way – Gross labour costs and other labour costs in the one worked hour.

The calculation of labour cost components and hourly labour costs corresponds to the European Parliament and Council Regulation (EC) No 450/2003 of 27 February 2003 on the labour cost index.

 

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 data on foundations, associations, funds and commercial companies thereof.

 

3) In Other labour costs are included: statutory social security contributions payable by employer, 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.

The changes of hourly labour costs are calculated taking into account the changes of the number of working days and seasonal influence. Seasonally adjusted and not adjusted data on the country generally are in the home page of the Central Statistical Bureau - www.csb.gov.lv in the section Data bases – population income and labour costs - monthly/quarterly data.

4) Data are revised due to the update of economically active population of enterprises.

Information by kinds of activity is classified by the main kind of activity of commercial companies, individual enterprises, institutions, foundations, associations or funds.

Information by regions is aggregated by the location of office of commercial companies, individual enterprises, institutions, foundations, associations or funds.

Prepared by the Wage Statistics Section
Ervīns Rekke
Tel. 6 7366666
ervins [dot] rekke [at] csb [dot] gov [dot] lv