On changes of labour costs in 4th quarter of 2009

16.03.2010

Compared to the 4th quarter of 2008, hourly labour costs in the country in the 4th quarter of 2009 reduced by 52 santims or by 12.5%, according to seasonally non-adjusted data of Central Statistical Bureau. But according to seasonally adjusted1) data they decreased by 13.1%.

Compared to the 3rd quarter of previous year, the reduction in the 4th quarter of 2009 according to seasonally non-adjusted data comprised 30 santims or 8.0%, but according to seasonally adjusted data – 9.8%.

But in 2009 hourly labour costs, in turn, according to seasonally non - adjusted data constituted LVL 3.92, and in comparison with 2008 they diminished by 8 santims or by 2.0%.

 

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

 

Compared to the 4th quarter of 2008, hourly labour costs in education in the 4th quarter of 2009 reduced by LVL 1.67 or by 36.6%, in public administration and defence; compulsory social security – by LVL 1.62 or by 26.8%, in health and social care – by LVL 0.74 or by 18.6%, in arts, entertainment and recreation – by LVL 0.67 or by 18.2%.

Hourly labour costs and their changes in the 4th quarter of 2009 by kind of economic activity (seasonally unadjusted data, by NACE Rev. 2 classification)

 

 

4th quarter 2008

4th quarter 2009

Changes, %

Total excluding agriculture and fishing

4.18

3.66

-12.5

Mining and quarrying

4.77

4.62

-3.1

Manufacturing

3.61

3.38

-6.5

Electricity, gas, steam and air conditioning supply

5.58

5.09

-8.8

Water supply; sewerage, waste management and remediation activities

4.35

3.74

-14.0

Construction

3.83

3.69

-3.6

Wholesale and retail trade; repair of motor vehicles and motorcycles

3.33

3.08

-7.5

Transportation and storage

4.33

4.01

-7.5

Accommodation and food service activities

2.43

2.35

-3.4

Information and communication

6.76

6.76

0.0

Financial and insurance activities

8.63

7.98

-7.6

Real estate activities

3.20

2.99

-6.7

Professional, scientific and technical activities

4.78

4.73

-1.0

Administrative and support service activities

3.70

3.35

-9.5

Public administration and defence; compulsory social security

6.07

4.45

-26.8

Education

4.57

2.90

-36.6

Human health and social work activities

3.98

3.24

-18.6

Arts, entertainment and recreation

3.66

2.99

-18.2

Other service activities

2.47

2.84

14.9


 

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 4th quarter of the 2008 the number of hours worked in the 4th quarter of 2009 reduced by 25.4%, but labour costs during this time period decreased by 34.7%.

Examining share of hourly labour costs in wages and salaries and in other labour costs, it may be concluded that hourly wages and salaries have reduced by 12.8%, but other labour costs – by 11.4%.

Labour costs, hours worked and their changes in the 4th quarter of 2009 (seasonally unadjusted data)

 

 

4th quarter 2008

4th quarter 2009

Changes, %

Labour costs, total, mln LVL

1648.3

1075.8

-34.7

 

of which

   
 

wages and salaries

1296.2

843.0

-35.0

 

other labour costs

352.1

232.8

-33.9

Hours worked, mln

393.9

293.8

-25.4

Total hourly labour costs, LVL

4.18

3.66

-12.5

 

of which

   
 

Hourly wages and salaries

3.29

2.87

-12.8

 

other hourly labour costs

0.89

0.79

-11.4


 

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

 

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