Increase of 34 cents in hourly labour costs

17.03.2014

Data of the Central Statistical Bureau show that, compared to the 4th quarter of 2012 hourly labour costs in the country in the 4th quarter of 2013 grew by 34 cents (24 santims) or by 5.9%, reaching EUR 6.18 (LVL 4.34) per hour.

Also seasonally adjusted data (differences in the number of calendar days and seasonal influence averted) show that labour costs increased by 5.9%.

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

Data source: Central Statistical Bureau of Latvia

The most notable increase in hourly labour costs during the year was recorded in mining and quarrying – of 19.9%, in arts, entertainment and recreation - of 15.6%, in public administration and trade - of 8.7%, in construction - of 7.7% and in real estate activities - of 7.1%.

Labour costs in mining and quarrying (wages and salaries as well as voluntary social insurance payments and employer’s benefits) grew by 15.7% , while the number of hours worked dropped by 3.5% due to the decrease in the number of employees (-0.4%).

Arts, entertainment and recreation was mainly affected by the rise in the labour costs in gambling and betting activities.

Labour costs in public administration and trade have increased more rapidly due to the rise in both regular wages and irregular premiums (irregular bonuses also include compensation for unused vacation, vacation allowance). Owing to the additional financing granted for rising wages and salaries in public administration, wages in 2013 were increased to court and prosecutor's office employees, as well as to policemen, frontier guards, firemen and officials of the Latvian Prison Administration who have their subsistence portion compensation integrated in their remuneration. Additional financing was also granted for ensuring subsistence portion compensation of soldiers.

In real estate activities rise was recorded in both regular wages and irregular premiums and bonuses, while the number of hours worked declined.

Hourly labour costs in information and communication sector decreased by 0.6%. Regular remuneration in this sector declined by 1.5%, whereas the rise in the number of hours worked slightly exceeded the labour cost growth - by 8.7% and 8.0% respectively.

A minor hourly labour cost drop was also recorded in electricity, gas, steam and air conditioning supply (of -0.1%), which was mostly affected by decrease in irregular payments.

Changes in hourly labour costs and wages
in the 4th quarter of 2013 by economic activity
(seasonally non-adjusted data, EUR)

 

Hourly labour costs

of which hourly wages and salaries

2012

4th qtr

2013

4th qtr

changes in %

2012

4th qtr

2013

4th qtr

changes in %

Total (B-S)

5.83

6.18

5.9

4.64

4.89

5.7

Mining and quarrying (B)

6.59

7.90

19.9

5.25

6.25

19.1

Manufacturing (C)

5.48

5.83

6.4

4.35

4.60

5.6

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

8.44

8.42

-0.1

6.39

6.29

-1.7

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

5.75

6.13

6.6

4.58

4.85

6.0

Construction (F)

5.35

5.76

7.7

4.28

4.64

8.1

Wholesale and retail trade;

repair of motor vehicles and motorcycles (G)

4.94

5.36

8.7

3.94

4.27

8.4

Transportation and storage (H)

6.63

6.80

2.7

5.24

5.41

3.2

Accommodation and food service activities (I)

3.70

3.88

5.3

2.96

3.13

5.4

Information and communication (J)

9.70

9.65

-0.6

7.66

7.66

0.0

Financial and insurance activities (K)

12.51

13.12

5.0

9.49

10.06

6.1

Real estate activities (L)

4.75

5.09

7.1

3.81

4.06

6.1

Professional, scientific and technical activities (M)

6.92

7.03

1.8

5.68

5.82

2.4

Administrative and support service activities (N)

5.14

5.34

3.9

4.15

4.31

3.9

Public administration and defence; compulsory social security (O)

7.51

8.17

8.7

5.93

6.39

7.6

Education (P)

4.85

5.12

5.6

3.87

4.06

4.9

Health and social work (Q)

5.21

5.42

4.0

4.17

4.34

3.9

Arts, entertainment and recreation (R)

4.70

5.44

15.6

3.77

4.34

15.1

Other service activities (S)

4.58

4.80

4.5

3.78

3.96

4.5

Both seasonally adjusted and seasonally non-adjusted data are available in the CSB database

 

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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), state mandatory social insurance contributions paid by the employees and personal tax. In line with the European Union (EU) regulatory enactments, when compiling data on labour costs, wages and salaries also 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 employer, employers’ contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions etc.), support payments from employer, awards, gifts, payments for sick list A, severance pay, entrepreneurship state risk duty.

Hourly labour costs are calculated dividing the sum of labour costs by the number of hours worked.

According to the EU regulatory enactments, hourly labour costs and changes thereof in this publication have been calculated for sectors B-S of the Statistical Classification of the Economic Activities (NACE), Rev. 2.

Indicator changes have been calculated from not rounded values.

Data were recalculated into Euro applying the fixed exchange rate 1 EUR = 0.702804 LVL.

 

More information:
Lija Luste
Wages Statistics Section
Tel. +371 67366917