On changes of labour costs in 4th quarter of 2008

16.03.2009

Compared to the 3rd quarter in the 4th quarter of 2008 hourly labour costs1) in the country increased by 1.3% (seasonally adjusted datadatiem2)), but compared to the 4th quarter of 2007 – by 14.6%, according to the data of Central Statistical Bureau.

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

 

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

 

 

Compared to the 3rd quarter in the 4th quarter of 2008 hourly labour costs according to seasonally adjusted data have reduced in public administration – by 2.5%, in electricity, gas and water supply - by 1.8%, as well as in the sector of hotels and restaurants – by 0.3%.

The lowest decrease of hourly labour costs was recorded in health and social work activity - by 0.4%. But the highest growth was observed in transport, storage and communication sector – 5.9%, as well as in such activities as real estate, renting and business activities – 4.6% and mining and quarrying – 4.3%.

Compared to the 4th quarter of 2007 the lowest growth of labour costs in the 4th quarter of 2008 was recorded in public administration – 3.1%. Higher increase was observed in transport storage and communication sector – 24.6%, education – 20.4%, as well as in real estate, renting and business activities – 19.9%.

Changes of hourly labour costs in the 4th quarter of 2008 by main kind of economic activity (seasonally adjusted data)

 

Activities according to NACE 1.1. rev.

Changes as % of

3rd quarter2008

4th quarter2007

Total excluding agriculture and fishing

1.3

14.6

Mining and quarrying

4.3

17.7

Manufacturing

3.4

17.1

Electricity, gas and water supply

-1.8

13.2

Construction

2.7

13.9

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

2.8

16.7

Hotels and restaurants

-0.3

15.5

Transport, storage and communication

5.9

24.6

Financial intermediation

3.2

12.8

Real estate, renting and business activities

4.6

19.9

Public administration and defence; compulsory social security

-2.5

3.1

Education

2.8

20.4

Health and social work

0.4

13.3

Other community, social and personal service activities

2.4

15.2

During the last five years the level of labour costs has grown more than two times, but in 2008 the growth is not so rapid anymore.

 

Hourly labour costs (LVL, seasonally non-adjusted data)

 

 

The highest hourly labour costs (seasonally non-adjusted data) in the 4th quarter of this year were in financial intermediation – LVL 8.29, in electricity, gas and water supply – LVL 6.14, and in public administration - LVL 5.93.

The lowest labour costs were recorded in sector of hotels and restaurants – LVL 2.43 per hour, in trade - LVL 3.32 per hour, in manufacturing – LVL 3.66 per hour, in community, social and personal service activities – LVL 3.72 per hour, as well as in construction – LVL 3.79 per hour.

 

 
 
 

Hourly labour costs by main kind of economic activity in the 4th quarter of 2007 and 2008 (LVL, seasonally non-adjusted data)

 

Activities according to NACE 1.1. rev.:

C-O total excluding agriculture and fishing

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 information on gross wages and salaries, wages and salaries in kind, statutory social security contributions payable by employer, employer’s voluntary social security contributions, 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 data on subsidies on remuneration received from state are not included. This information does not include indicators 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 byWages Statistics Section

Tel. 67366666

Ervins Rekke