On changes of labour costs in 2nd quarter of 2010

13.09.2010

Compared to the 2nd quarter of the previous year, hourly labour costs in the country in the 2nd quarter of 2010 reduced by 40 santims or by 9.6% (seasonally non-adjusted data), according to the data of Central Statistical Bureau. But according to seasonally adjusted1) data they diminished by 8.4%, and stayed at the same level after working day adjustment.

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

Hourly labour costs in 2nd quarter of 2010, if compared to the 2nd quarter of previous year, witnessed the most significant decrease in education - by 21.9%, in public administration and defence; compulsory social security – by 16.3%, in health and social work – by 12.3%, in arts, entertainment and recreation – by 10.9%.

Hourly labour costs and their changes in the 2nd quarter of 2010 by kind of economic activity (seasonally unadjusted data, by NACE Rev. 2 classification)

 

2nd quarter

2009

2nd quarter

2010

Changes, %

Total excluding agriculture and fishing

4.19

3.79

-9.6

Mining and quarrying

4.20

4.19

-0.3

Manufacturing

3.65

3.43

-6.2

Electricity, gas, steam and air conditioning supply

6.76

5.96

-11.9

Water supply; sewerage, waste management and remediation activities

4.24

3.97

-6.4

Construction

3.78

3.43

-9.1

Wholesale and retail trade; repair of motor vehicles and motorcycles

3.39

3.12

-7.9

Transportation and storage

4.56

4.33

-5.0

Accommodation and food service activities

2.46

2.40

-2.4

Information and communication

6.95

6.47

-6.8

Financial and insurance activities

8.56

8.43

-1.5

Real estate activities

3.19

3.08

-3.3

Professional, scientific and technical activities

4.98

4.82

-3.1

Administrative and support service activities

3.52

3.52

0.1

Public administration and defence; compulsory social security

5.31

4.44

-16.3

Education

4.28

3.34

-21.9

Human health and social work activities

3.93

3.44

-12.3

Arts, entertainment and recreation

3.51

3.13

-10.9

Other service activities   

2.73

2.87

4.9

In 2nd quarter of 2010, if compared to the 2nd quarter of previous year, other labour costs reduced more rapidly than wages and salaries. That mainly may be explained with the decrease of the employee number reduction rates and drop of the compensations paid to the dismissed employees. Due to the economic situation also voluntary social security contributions and payments of the allowances to employees continue to reduce.

Labour costs, hours worked and their changes in the 2nd quarter of 2010 (seasonally un-adjusted data)

 

2nd quarter 2009

2nd quarter 2010

Changes, %

Labour costs, total, mln LVL

1298.1

1036.2

-20.2

 

   of which

 

 

 

 

 

   wages and salaries

1020.2

825.1

-19.1

 

 

   other labour costs

277.9

211.1

-24.1

Hours worked, mln

309.6

273.3

-11.7

Total hourly labour costs, LVL

4.19

3.79

-9.6

 

   of which

 

 

 

 

 

   Hourly wages and salaries

3.29

3.02

-8.4

 

 

   other hourly labour costs

0.90

0.77

-14.0

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 by Wages Statistics Section
Lija Luste
Tel. 67366917