On changes of labour costs in 4th quarter of 2011

16.03.2012

Compared to the 4th quarter of 2010, hourly labour costs in the country in the 4th quarter of 2011 have grown by 19 santims or by 5.4%, according to the data of Central Statistical Bureau. Seasonally adjusted data1) show a growth of 5.3%, whereas calendar day adjustment indicates a rise of 5.4%.

Changes of hourly labour costs over corresponding quarter a year before, %

In comparison with the 4th quarter of 2010, the volume labour costs in the 4th quarter of 2011 increased more rapidly than the number of hours worked – by 8.9% and 3.4%, respectively.

The most notable rise of the hourly labour costs during a year was recorded in public administration and defence; compulsory social security – of 9.7%, in other service activities – of 9.1%, in financial and insurance activities – of 7.7%, in real estate activities – of 7.6%, as well as in arts, entertainment and recreation sector – of 7.1%. In the mentioned sectors a growth of both wages and employer’s voluntary social security contributions was observed. In public administration as well as arts, entertainment and recreation sector a rise in the hourly labour costs was influenced also by the reduction of the number of hours worked, but in other service activities – by growth of the allowances paid to the dismissed employees.

A decrease of the hourly labour costs was recorded in following sectors: water supply; sewerage, waste management and remediation activities – of 1.9%, professional, scientific and technical activities – of 1.7%, as well as administrative and support service activities – of 1.2%. Among the mentioned sectors a reduction of the hourly wages was observed only in water supply; sewerage, waste management and remediation activities, that was caused by more rapid rise of the number of hours worked, while drop of the labour costs in other sectors was due to the wages and salaries in kind and diminish in the severance pays.

Changes in hourly labour costs and wages in 4th quarter of 2011 by economic activity
(seasonally non-adjusted data, LVL)

 

Hourly labour costs

of which hourly wages and salaries

4th qtr 2010

4th qtr 2011

Changes in %

4th qtr 2010

4th qtr  2011

Changes in %

Total

3.67

3.86

5.4

2.91

3.07

5.5

Mining and quarrying

4.41

4.47

1.5

3.51

3.57

1.6

Manufacturing

3.42

3.63

5.9

2.71

2.87

5.9

Electricity, gas, steam and air conditioning supply

5.27

5.28

0.1

3.95

3.96

0.1

Water supply; sewerage, waste management and remediation activities

3.90

3.82

-1.9

3.11

3.05

-2.1

Construction

3.44

3.62

5.2

2.72

2.88

5.8

Wholesale and retail trade;

repair of motor vehicles and motorcycles

3.06

3.26

6.7

2.43

2.60

6.7

Transportation and storage

4.18

4.32

3.4

3.26

3.40

4.0

Accommodation and food service activities

2.33

2.46

5.6

1.86

1.97

5.7

Information and communication

6.55

6.67

1.8

5.15

5.21

1.1

Financial and insurance activities

7.73

8.32

7.7

6.02

6.45

7.2

Real estate activities

2.96

3.19

7.6

2.37

2.55

7.4

Professional, scientific and technical activities

4.85

4.76

-1.7

3.86

3.87

0.3

Administrative and support service activities

3.51

3.47

-1.2

2.79

2.79

0.1

Public administration and defence; compulsory social security

4.48

4.91

9.7

3.53

3.88

9.9

Education

3.03

3.13

3.2

2.44

2.52

3.0

Human health and social work activities

3.26

3.49

6.9

2.61

2.79

6.8

Arts, entertainment and recreation

2.91

3.12

7.1

2.33

2.51

7.3

Other service activities   

2.82

3.08

9.1

2.28

2.51

9.9

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

 

Prepared by Wages Statistics Section
Lija Luste
Tel. 67366917


1) Influence of seasonality and varying number of calendar 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.

Hourly labour costs are calculated for the following sectors: mining and quarrying (B), manufacturing (C), electricity, gas, steam and air conditioning supply (D), water supply; sewerage, waste management and remediation activities (E), construction (F), wholesale and retail trade; repair or motor vehicles and motorcycles (G), transportation and storage (H), accommodation and food service activities(I), information and communication (J), financial and insurance activities (K), real estate activities (L), professional, scientific and technical activities (M), administrative and support service activities (N), public administration and defence; compulsory social security (O), education (P), health and social work (Q), arts, entertainment and recreation (R), other service activities (S).