On changes of labour costs in 2nd quarter of 2011

13.09.2011

Compared to the second quarter of 2010, hourly labour costs in the second quarter of 2011 have increased by 23 santims or 6.1%, according to data of the Central Statistical Bureau. Whereas according to seasonally adjusted data1) the growth comprised 5.3%, but after averting the influence of changes in the number of calendar days – 5.0%.

Compared to the 1st quarter of 2011, hourly labour costs have grown by 42 santims or 11.7%.

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

During the year the most notable growth of labour costs was recorded in education, where the hourly labour costs have increased by 15.9%, as well as in public administration and defence; compulsory social security (an increase of 11.9%), in professional, scientific and technical activities (of 10.0%), in real estate activities (of 7.2%), in arts, entertainment and recreation (of 6.6%), and in water supply; sewerage, waste management and remediation activities (of 6.3%).

Whereas the smallest growth of hourly labour costs was registered in transportation and storage (of 0.4%) and in administrative and support service activities (of 1.0%). Both - in financial and insurance activities and in mining and quarrying labour costs have grown by 1.2%.

Changes of hourly labour costs and wages and salaries by main kind of economic activity in the second quarter of 2011
(seasonally non-adjusted data)

 

Labour costs per hour worked

of which hourly wages and salaries

2nd quarter

2010

2nd quarter

2011

Changes %

2nd quarter

2010

2nd quarter

2011

Changes %

Total 2)

3.79

4.02

6.1

3.02

3.21

6.3

Mining and quarrying

4.21

4.26

1.2

3.38

3.42

1.4

Manufacturing

3.44

3.63

5.7

2.74

2.89

5.6

Electricity, gas, steam and air conditioning supply

5.94

6.17

3.9

4.46

4.72

5.8

Water supply; sewerage, waste management and remediation activities

3.98

4.23

6.3

3.17

3.35

5.7

Construction

3.43

3.56

3.8

2.73

2.84

3.9

Wholesale and retail trade;

repair of motor vehicles and motorcycles

3.12

3.27

4.8

2.49

2.62

5.0

Transportation and storage

4.39

4.41

0.4

3.48

3.47

-0.2

Accommodation and food service activities

2.40

2.49

3.8

1.92

1.99

3.7

Information and communication

6.45

6.78

5.1

5.02

5.34

6.5

Financial and insurance activities

8.42

8.53

1.2

6.64

6.75

1.6

Real estate activities

3.09

3.32

7.2

2.48

2.66

7.4

Professional, scientific and technical activities

4.81

5.29

10.0

3.84

4.24

10.4

Administrative and support service activities

3.49

3.52

1.0

2.78

2.81

1.2

Public administration and defence; compulsory social security

4.38

4.90

11.9

3.49

3.94

12.8

Education

3.34

3.87

15.9

2.69

3.12

15.9

Human health and social work activities

3.44

3.63

5.3

2.77

2.91

5.2

Arts, entertainment and recreation

3.13

3.33

6.6

2.52

2.68

6.5

Other service activities   

2.86

3.01

5.5

2.31

2.45

6.0

Study of the structural changes of the labour costs shows that in the second quarter of 2011, as compared to the second quarter of 2010, the increase was influenced mainly by growth of 6.3% in wages and salaries. Besides the increase can be observed both - in direct wages and salaries, as well as in remuneration in services and goods, provided by the employer to employees.

The increase in other hourly labour costs was not as rapid as that in wages and salaries and comprised – 5.4%. It can be explained with the drop of the volume of voluntary social insurance costs, severance pay and other allowances paid by the employer. As compared to the second quarter of 2010, an increase was recorded only in the amounts of calculated sickness allowances.

Labour costs, hours worked and changes in the 2nd quarter of 2011
(seasonally non-adjusted data)

 

2nd quarter

2010

2nd quarter

2011

Changes, %

Labour costs, total, mln LVL

1036.3

1117.1

7.8

 

of which

 

 

 

 

wages and salaries

825.2

891.1

8.0

 

other labour costs

211.1

226.0

7.1

Hours worked, mln

273.4

277.7

1.6

Total hourly labour costs, LVL

3.79

4.02

6.1

 

of which

 

 

 

 

hourly wages and salaries

3.02

3.21

6.3

 

other hourly labour costs

0.77

0.81

5.4

Both seasonally adjusted and seasonally non - adjusted data are available in the data base of the Central Statistical Bureau.

 

Prepared by Wages Statistics Section
Lija Luste
Tel. 67366917


1) Influence of seasonality and varying number of calendar days has been averted.
2) Excluding agriculture, forestry and fishing.

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 (vacation 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, 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.