On changes of labour costs in 4th quarter of 2010

16.03.2011

Compared to two previous years, reduction rate of hourly labour costs in 2010 has decreased, and as a result of that at the end of the 2010 hourly labour costs came closer to the level of the 4th quarter of the year before, according to the data of Central Statistical Bureau.

Compared to the 4th quarter a year before, hourly labour costs in the 4th quarter of 2010 have grown by 0.2%, according to seasonally non-adjusted data. But according to seasonally adjusted1) data the growth comprised 2.7%.

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

In comparison with the corresponding time period a year before, most notable growth of labour costs in the 4th quarter of 2010 was recorded in education (4.9%), administrative and support service activities (4.8%), water supply; sewerage, waste management and remediation activities as well as transportation and storage (4.2%), and electricity, gas, steam and air conditioning supply (3.7%).

But most significant decrease, in turn, was recorded in construction (-6.9%), mining and quarrying (-4.7%), as well as arts, entertainment and recreation (-3.8%).

Hourly labour costs and their changes by main kind of economic activity
(seasonally non-adjusted data)

 

4th quarter 2009

4th quarter 2010

Changes, %

Total, excluding agriculture and fishing

3.66

3.67

0.2

Mining and quarrying

4.62

4.41

-4.7

Manufacturing

3.38

3.42

1.4

Electricity, gas, steam and air conditioning supply

5.09

5.27

3.7

Water supply; sewerage, waste management and remediation activities

3.74

3.90

4.2

Construction

3.69

3.44

-6.9

Wholesale and retail trade;

repair of motor vehicles and motorcycles

3.08

3.06

-0.7

Transportation and storage

4.01

4.18

4.2

Accommodation and food service activities

2.35

2.33

-0.8

Information and communication

6.76

6.55

-3.0

Financial and insurance activities

7.98

7.73

-3.1

Real estate activities

2.99

2.96

-0.9

Professional, scientific and technical activities

4.73

4.85

2.5

Administrative and support service activities

3.35

3.51

4.8

Public administration and defence; compulsory social security

4.47

4.48

0.2

Education

2.89

3.03

4.9

Human health and social work activities

3.24

3.26

0.7

Arts, entertainment and recreation

3.03

2.91

-3.8

Other service activities   

2.84

2.82

-0.4

Study of the structural changes of the labour costs shows that increase was influenced by the growth of wages and salaries by 1.3%, but other labour costs in the 4th quarter of 2010, in turn, have reduced by 3.8%, if compared to the 4th quarter a year before. This decrease may be explained with the reduction of severance pay and other allowances paid by the employer, as well as with the drop of the volume of voluntary social insurance costs.

Labour costs, hours worked and their changes
(seasonally non-adjusted data)

 

4th quarter 2009

4th quarter 2010

Changes, %

Labour costs, total, mln LVL

1075.8

1089.2

1.2

 

  of which

 

 

 

 

  wages and salaries

843.0

862.9

2.4

 

  other labour costs

232.8

226.2

-2.8

Hours worked, mln

293.8

297.0

1.1

Total hourly labour costs, LVL

3.66

3.67

0.2

 

  of which

 

 

 

 

  hourly wages and salaries

2.87

2.91

1.3

 

  other hourly labour costs

0.79

0.76

-3.8

Both seasonally adjusted and seasonally not 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 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, 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.