In the 2nd quarter, hourly labour costs grew by 10.6 %

15.09.2017

Seasonally non-adjusted data of the Central Statistical Bureau (CSB) show that, compared to the 2nd quarter of the previous year, in the 2nd quarter of 2017 hourly labour costs rose by 77 cents or 10.6 %, reaching 8.07 euros. Seasonally adjusted data show that labour costs increased by 8.2 %.

Changes in hourly labour costs
(compared to the corresponding quarter of the previous year, %)
 

Seasonally non-adjusted data show that, compared to the 2nd quarter of 2016, in the 2nd quarter of 2017 rise in hourly labour costs was recorded in almost all sectors, except for other service activities (activities of public, political and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities) in which a drop of 0.3 % was recorded. Sharper rise in the hourly labour costs was recorded in education (of 16.8 %), energy sector (14.2 %), professional, scientific and technical activities (legal and accounting activities, advertising and market research, architectural and engineering activities, management consultancy activities, scientific research and development, etc.) (13.0 %), public administration and defence (12.9 %), and trade (11.5 %).

Rise in regular wages and salaries and support payments from the employer had more notable influence on the increase of labour costs in education sector. In the energy sector, steeper rise was recorded in irregular wages and salaries, whereas in professional, scientific and technical activities as well as public administration and defence – in employers’ voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions etc.).

Hourly labour costs are influenced not only by changes in wages, salaries and other labour costs, but also by the fluctuations in the number of hours worked during the year. In the 2nd quarter of the year, compared to the corresponding period of the previous year, the number of hours worked reduced almost in all economic activities, except for information and communication, construction, administrative and support service activities, as well as real estate activities.

The smallest rise in hourly wages and salaries was recorded in real estate activities – of 2.0 %. Increase in wages, salaries and other labour costs in this sector was small, whereas the number of hours worked in it grew slightly.

In the 2nd quarter of 2017, the highest hourly labour costs were observed in financial and insurance activities (17.78 euros), information and communication (12.53 euros), energy sector (11.90 euros), public administration and defence (10.12 euros), and mining and quarrying (8.46 euros). The lowest hourly labour costs, in turn, were recorded in accommodation and food service activities (5.46 euros), other service activities (5.76 euros), real estate activities (6.55 euros), arts, entertainment and recreation (6.78 euros), as well as administrative and support service activities (6.88 euros).

Changes in hourly labour costs by main kind of economic activity
(seasonally non-adjusted data, euros)

 

Hourly labour costs

of which wages and salaries

Q2 2016

Q2 2017

Changes, %

Q2 2016

Q2 2017

Changes, %

Total (BS)

7.30

8.07

10.6

5.87

6.48

10.4

Mining and quarrying (B)

7.91

8.46

7.0

6.36

6.78

6.6

Manufacturing (C)

6.85

7.49

9.3

5.46

5.98

9.5

Electricity, gas, steam and air conditioning supply (D)

10.41

11.90

14.2

7.90

9.16

16.0

Water supply; sewerage, waste management and remediation activities (E)

7.51

8.30

10.4

5.99

6.62

10.4

Construction (F)

6.88

7.37

7.2

5.60

5.99

7.0

Wholesale and retail trade;

repair of motor vehicles and motorcycles (G)

6.50

7.25

11.5

5.22

5.82

11.5

Transportation and storage (H)

7.53

8.23

9.3

5.98

6.54

9.5

Accommodation and food service activities (I)

4.98

5.46

9.8

4.01

4.39

9.5

Information and communication (J)

11.57

12.53

8.2

9.31

10.07

8.2

Financial and insurance activities (K)

16.39

17.78

8.5

12.97

14.10

8.8

Real estate activities (L)

6.42

6.55

2.0

5.20

5.31

2.1

Professional, scientific and technical activities (M)

7.78

8.79

13.0

6.47

7.29

12.8

Administrative and support service activities (N)

6.49

6.88

6.1

5.30

5.60

5.6

Public administration and defence, compulsory social security (O)

8.96

10.12

12.9

7.25

8.04

10.9

Education (P)

6.22

7.27

16.8

5.02

5.86

16.7

Human health and social work activities (Q)

6.53

7.18

9.9

5.26

5.78

9.7

Arts, entertainment and recreation (R)

6.12

6.78

10.9

4.96

5.49

10.7

Other service activities (S)

5.78

5.76

-0.3

4.80

4.78

-0.4

 
More information on Latvian labour costs is available in the CSB database section Labour Costs – Key Indicators. Statistics on labour costs in the 2nd quarter of 2017 is published in the database section Labour Costs (Short term statistical data).

Methodological explanations

Labour costs include gross wages and salaries and other labour costs. Hourly labour costs are calculated by dividing the sum of labour costs by the number of hours worked.

Wages and salaries are regular and irregular direct wages and salaries – basic salary (monthly, wage), payment for the time worked or job completed, regular and irregular premiums and bonuses, payments for days not worked (vacation and other days not worked), state mandatory social insurance contributions paid by the employees, and personal income tax. In line with the regulatory enactment of the European Union (EU), when compiling data on labour costs, wages and salaries include remuneration in kind (goods and services provided by the employer to employees free of charge or at a lower price, living quarters, mobile telephone, transport compensation etc.). Other labour costs include statutory social security contributions payable by the employer, employers’ contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions etc.), support payments from the employer, awards, gifts, payments for sick list A, severance pay, entrepreneurship state risk duty.

According to the EU regulatory enactments, hourly labour costs and changes thereof have been calculated for sectors B–S of the NACE Rev. 2.

Indicator changes have been calculated from not rounded values.

 

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Sanda Rieksta
Information and Communication Section
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More information on data:
Ilze Rutka
Wage Statistics Section
E-mail: Ilze [dot] Rutka [at] csb [dot] gov [dot] lv
Phone: +371 67366925