In the 2nd quarter, hourly labour costs reached 7.50 euros

15.09.2016

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 2016 hourly labour costs grew by 45 cents or by 6.4 %, reaching 7.50 euros per hour. According to seasonally adjusted data labour costs increased by 9.2 %.

Changes in hourly labour costs over the corresponding quarterof the previous year, %

Compared to the 2nd quarter of 2015, in the 2nd quarter of 2016 increase in the hourly labour costs (according to seasonally non-adjusted data) was recorded in all sectors, except from the public administration, in which annual drop constituted 1.8 %, as well as energy and education, in which reduction comprised 0.4 % and 0.3 %, respectively.

The sharpest rise in the hourly labour costs was recorded in other service activities (of 21.4 %), administrative and support service activities (13.2 %), construction (12.9 %), professional, scientific and technical activities (11.7 %), accommodation and food service activities (11.7 %), as well as water supply, sewerage, waste management and remediation activities (11.5 %).

As hourly labour costs are influenced not only by wages, salaries and other labour costs, but also by the number of hours worked, the sharp rise not always shows positive trend. In construction sector the decline recorded in the number of hours worked was faster than that observed in the labour costs – by 16.8 % and 6.1 %, respectively. In administrative and support service activities, as well as water supply; sewerage, waste management and remediation activities increase was recorded in both labour costs and hours worked. In other sectors indicating the greatest hourly labour cost increase, the labour costs grew, while the number of hours worked reduced during the year.

In sectors indicating hourly labour cost reduction, changes of the indicator were mainly affected by the increase in number of hours worked, not by the rise in labour costs. For example, in public administration annual increase in the labour costs constituted 4.4 %, while increase in the number of hours worked – 6.3 %, in education – 2.3 % and 2.5 %, respectively. Changes in the number of hours worked are influenced by various factor, e.g., changes in the number of employees or number of working days in the reference period.

 

The increase exceeding the national average indicator – 6.4 % – was recorded also in information and communication (of 10.5 %), trade and mining and quarrying (8.7 % in each), real estate activities (7.5 %), and manufacturing (6.9 %).

Similarly as in the 2nd quarter of the previous year, the highest hourly labour costs were observed in financial and insurance activities (16.47 euros), information and communication (12.15 euros), energy (10.47 euros) and public administration (8.96 euros). The lowest hourly labour costs, in turn, were recorded in accommodation and food service activities (5.22 euros), arts, entertainment and recreation (6.22 euros), education (6.24 euros), other service activities (6.32 euros), as well as human health and social work activities (6.58 euros).

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

 

Hourly labour costs

of which wages and salaries

Q2 2015

Q2 2016

changes in %

Q2 2015

Q2 2016

changes in %

Total (B–S)

7.05

7.50

6.4

5.68

6.03

6.1

Mining and quarrying (B)

7.46

8.11

8.7

6.00

6.52

8.6

Manufacturing (C)

6.56

7.01

6.9

5.26

5.59

6.2

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

10.51

10.47

-0.4

8.06

7.93

-1.6

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

6.81

7.60

11.5

5.43

6.05

11.5

Construction (F)

6.41

7.24

12.9

5.22

5.88

12.8

Wholesale and retail trade;

repair of motor vehicles and motorcycles (G)

6.14

6.68

8.7

4.95

5.36

8.3

Transportation and storage (H)

7.48

7.75

3.6

5.98

6.15

2.9

Accommodation and food service activities (I)

4.67

5.22

11.7

3.77

4.21

11.5

Information and communication (J)

10.99

12.15

10.5

8.92

9.78

9.6

Financial and insurance activities (K)

15.71

16.47

4.8

12.67

13.03

2.8

Real estate activities (L)

6.27

6.75

7.5

5.09

5.45

7.1

Professional, scientific and technical activities (M)

7.53

8.41

11.7

6.23

7.00

12.4

Administrative and support service activities (N)

5.97

6.76

13.2

4.90

5.52

12.6

Public administration and defence, compulsory social security (O)

9.13

8.96

-1.8

7.26

7.25

-0.2

Education (P)

6.26

6.24

-0.3

5.06

5.04

-0.4

Human health and social work activities (Q)

6.47

6.58

1.7

5.20

5.30

1.9

Arts, entertainment and recreation (R)

6.05

6.22

2.8

4.91

5.03

2.5

Other service activities (S)

5.20

6.32

21.4

4.34

5.22

20.2

 

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 2016 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.

Media requests:
Sanda Rieksta
Information and Communication Section
E-mail: media [at] csb [dot] gov [dot] lv
Phone: +371 67366621, +371 27880666
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More information on data:
Oksana Vanaga
Wage Statistics Section
E-mail: Oksana [dot] Vanaga [at] csb [dot] gov [dot] lv
Phone: + 371 67366628