Data on Labour cost index are used to ensure Community countries with regular (short-term) and timely labour cost indicators, to control changes in labour costs and to understand dynamics of inflation process and labour market.

Definitions

Gross wage or salary covers regular and irregular direct remuneration – basic wage (monthly wage, salary); payments on the time worked or amount of work done; regular and irregular bonuses and premiums, additional payments for overtime work and work on holidays, additional payment before vocation; leave benefit; compensation for unused leave; payments on days not worked – annual and additional leave, payments on other days not worked; statutory social security contributions payable by employees; and sums of income tax. In compliance with the EU Regulations, when compiling data on labour costs, gross wages and salaries include also wage or salary in kind.

Starting from 2009, gross wages and salaries include payment on idle time: till 2008, payment on idle time was included in other labour costs.
 

Total quarterly (annual) labour costs divided by number of actually worked hours of all employees within a quarter (year).

If compared to annual data quarterly data do not include vocational training costs and recruitment costs; expenditures for work clothes and uniforms as well as other costs not specified yet.
 

Index measuring changes in the hourly compensation paid by the employer to employ personnel having working time registration.

Quarterly Labour cost index is calculated basing on average hourly labour costs of 2012, excluding professional training costs covered by the employer and recruitment costs.

Index measuring changes in the hourly compensation paid by the employer to employ personnel having working time registration. Quarterly Labour cost index is calculated basing on average hourly labour costs of 2012, excluding professional training costs covered by the employer and recruitment costs.

Influence of seasonality and varying number of working days has been averted.

The total labour costs are formed by the employer’s expenditure necessary to employ the staff.

The labour costs include remuneration for the work done both in money (direct remuneration) and in goods and services (wages and salaries in kind); employers’ compulsory and voluntary social contributions paid for the employees; employers’ direct social contributions to employees, as well as other costs arising when employing the workforce. 

In calculations the wage and salary subsidies are subtracted from the labour costs.

Other labour costs include: mandatory state social insurance contributions paid by employer, voluntary social security contributions paid by employer (supplementary pension insurance contributions, health and life insurance contributions, etc.), benefits paid by employer, rewards, gifts, payment of sick-leave certificates A, redundancy benefit, payment for idle standing (until 2008 including), fee for entrepreneurship risk.

Compared to quarterly data, other labour costs over a year include professional training costs, as well as costs related to recruitment, workwear and uniform costs, costs of medical examinations and vaccination needed for work, costs on special food and drinks.

Data that in time series analysis allow evaluating changes in economic processes more objectively, by eliminating the influence of seasonality and calendar. With the help of this method, e.g., influence of Easter, Christmas and other holidays, as well as labour costs depending on the season are averted. It should be taken into account that according to the seasonal and calendar adjustment methods, when data on new period are added to the series, information of previous periods is also recalculated. Therefore, information on previous periods in adjusted time may change each quarter.

Data availability

Dissemination format and Release calendar

Theme Reference period Planned release datesort icon Remarks
Labour cost indices
  • 2nd quarter 2018
17.09.2018
Labour cost indices
  • 3rd quarter 2018
17.12.2018

Theme Reference period Actual release datesort icon Remarks
Labour cost indices
  • 1st quarter 2018
15.06.2018
Labour cost indices
  • 4th quarter 2017
16.03.2018
Labour cost indices
  • 2017
16.03.2018
Labour cost indices
  • 3rd quarter 2017
15.12.2017
Labour cost indices
  • 2nd quarter 2017
15.09.2017

Data are published 75 days after the end of report period.

Publications

Download CSB publications on various time periods (starting from 2007) in section E-publications.

Data on labour costs also are published in the monthly bulletins of statistics and in the statistical yearbooks. Publications are available in E-publications section under topic "General Statistics".


Classification

Data are compiled, calculated and published by using Statistical Classification of Economic Activities in the European Community, Rev. 2 (NACE Rev. 2).

A Classification Catalogue with classification codes and their explanations has been published on the CSB website.

Customised data sets

If you would like to obtain statistical data that are not available in publications or in the CSB online data base, please send us an information request:
 - postal mail: 1 Lāčplēša Street, Riga, Latvia, LV-1301;
 - e-mail: info [at] csb [dot] gov [dot] lv;
 - visiting Information centre.

Read more

Data collection

Survey method and source data

Data on labour cost index are obtained by surveying enterprises, central government institutions, local governments and institutions thereof and institutional units.

Information is acquired by compiling questionnaires developed by the CSB – quarterly statistical reports on activities of merchants, institutions, foundations, associations and funds (2-Labour, 2-Labour-municipalities, 2-Labour (short)), and administrative data.

Statistical report form 2-Labour (short), containing fewer indicators than form 2-Labour, is submitted by individual merchants, foundations, associations and funds employing 7–49 persons. Form 2-Labour-municipalities submitted by local govermments and municipal insitutions. All other statistical units included in the sample submit statistical report form 2-Labour.

Administrative data are acquired with the help of CSB calculations based on the State Revenue Service information from the Report on state social security compulsory payments from employee income, Income Tax and Business Risk State Duty during the reference month, from the Report regarding the employment income, personal income tax and state mandatory social insurance contributions of the payers of the income tax for seasonal farm workers and from Micro-enterprise Tax Declaration.

Information is compiled on all fields. Data by kinds of economic activity are compiled by the main kind of activity which includes also all the other activities of the respondent, except centralized accountancies of the local governments, which submit data separately on following sectors:

  • Electricity, gas, steam and air conditioning supply;
  • Public administration and defence; compulsory social security;
  • Education;
  • Residential care activities;
  • Social work activities without accommodation;
  • Creative, arts and entertainment activities;
  • Libraries, archives, museums and other cultural activities;
  • Cleaning activities.

Statistical population

Target population are all statistical units (state and local government budgetary institutions, state and local government merchants, private commercial companies, individual merchants, peasant and fishermen farms employing 50 persons and more, foundations, associations and funds employing 1 and more persons) economically active in 2018.Target population of the survey does not include:

  • religious organisations;
  • rural handicraft enterprises;
  • family businesses;
  • natural persons performing economic activity.

Target population does not include also statistical units having NACE Rev. 2 classification economic activity code starting with 97 or 98.

Target population Number of employees
1–6 7–9 10–49 50+
State and local government budgetary institutions full-scope survey
State and local government merchants full-scope survey
Private commercial companies imputed sample survey full-scope survey
Individual merchants imputed sample survey full-scope survey
Peasant and fishermen farms not surveyed full-scope survey
Foundations, associations, funds State and local government foundations (SVTK* code starts with 1 or 2) full-scope survey
other
(SVTK* code does not start with 1 or 2)
imputed sample survey full-scope survey

* STVK – CSB Typological Classifier of Statistical Units.

Sample size

Each quarter of 2018 more than 7 thsd respondents are surveyed. Budgetary institutions, businesses with government or local government participation 50% and more and all businesses of the private sector with 50 employees and more are surveyed completely. Other statistical units are surveyed with the help of simple stratified sample, which is carried out in earlier formed stratum by kind of economic activity and size of enterprise (by number of employees).

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

Target population

Sample size

Frame

%

State and local government budgetary institutions

959 959

100

State and local government merchants

448 448

100

Private commercial companies

5 870 14 540

40

Individual merchants

22 100

22

Peasant and fishermen farms

8 8

100

Foundations, associations, funds

173 357

46

Total

7 480  16 430

46

Sample, regardless all other pre-conditions, includes 1083 general government sector enterprises (institutional sector classification code starts with S13).

Statistical processing

Calculation methods

Information is obtained from the statistical surveys every quarter. The information acquired form the respondents of the sample is summarized with the help of weights given for the each sample unit. Report indicators multiplied with weights first of all are added together at class (four-digit), group (three-digit), division (two-digit) and section (letter) level according to NACE Rev. 2. Information is compiled in breakdown by main kind of activity.

With an aim to estimate imputations of non-responding and directly not surveyed statistical units and credibility of data acquired by using weights, data are analysed each quarter. Summary indicators are compared with previous periods and administrative data sources.

The labour costs index LCI (in percent) in the period t is calculated as follows, with the average hourly labour costs in 2012 = 100 taken as the basis:

LCIt = LCt : LC average in 2012 x 100, where

LCt – hourly labour costs in the period t;

LC average in 2012 – hourly labour costs on average in 2012.

Hourly labour costs LC in the period t are calculated in the following way:

LCt = TLCt : THt, where

TLCt – total labour costs in the period t;

THt – total hours actually worked in the period t.

Hourly labour costs are calculated separately on each of the following three labour cost categories:

  1. total labour costs;
  2. gross wages and salaries;
  3. other labour costs.

Labour cost indices are calculated and published in two ways – seasonally adjusted and non-adjusted. Seasonally adjusted data are indicators that allow estimating changes in economic processes in time series analysis more objectively, eliminating influence of seasonality, varying number of work days, various holidays (e.g., Easter, Ligo, or Christmas) on labour costs. Seasonally adjusted data are obtained with the help of specific data processing programme DEMETRA. When, after the seasonal adjustment, data of the new period are added, also data on previous periods are re-calculated.

The aggregate labour cost index for NACE Rev. 2 B–S is calculating using Laspeyres chain index method, where the total labour costs of previous year by NACE sections are used as weights. The weights are changed annually.

Calendar and seasonal adjustment

A time series is a sequence of observations collected at regular time intervals, for example, a monthly time series. It characterises indicator changes or development thereof.  Seasonality and calendar effects are present in a large number of economic time series.

Seasonality or seasonal fluctuations of time series mean those movements, which recur with similar intensity in the same season each year. For example, each year Christmas shopping time can be observed in time series reflecting retail sales statistics. Change of seasons, social habits and influence of institutional factors are among the main causes of seasonality.

The calendar effects cover influence of calendar on time series. It is impact left by differing number of working days (or Mondays, Tuesdays and other days of the week) in months on changes of indicator. For example, number of working days differing among the months may affect goods produced time series.

When the time series are influenced by seasonality or calendar effects, it may be difficult to get clear understanding on indicator changes over the time.  Seasonal adjustment is made to eliminate seasonal fluctuations and calendar effects in time series.

As a result seasonally adjusted time series, from which seasonality and calendar effects have been removed, are produced. It means that seasonally adjusted time series provide an estimate for what is “new” in the series, for example turning points in trends, business cycle or irregular component.  Moreover seasonal adjustment results in calendar adjusted time series, in which calendar effects or varying number of working days in months has been eliminated. Specifics of seasonally adjusted statistics allows improving data comparability over time:

  • Seasonally adjusted time series do not contain seasonal fluctuations and calendar effects, thus it is possible to compare, for example, data on the current month with the previous month's data.
  • Calendar adjusted time series are not influenced by calendar effects and are used to compare, for example, statistics on current month with the data on corresponding month of the previous year.

The seasonal adjustment is made taking into account seasonal adjustment guidelines developed by the European Statistical System.

Software

JDemetra+

Seasonal adjustment method

TRAMO/SEATS

Last model revision

For data of the 1st quarter of 2017

Base period

Base year of the Labour cost index is 2012.

Data revision

Data on the 1st–3rd quarter are specified at the end of the year, when the data on the 4th quarter are available. Annual data are not revised.

Labour cost index is revised each quarter, as seasonal adjustment of data is made.

Comparability

Comparability over time

Data on hourly Labour Cost Index are available since the 1st quarter of 2000.

Starting from the 1st quarter of 2009 data are published in compliance with the new Classification of Economic Activities NACE Rev. 2. To ensure long enough, comparable time series, data on 2005–2008 were re-calculated according to the new revision of the NACE.

International comparability

Eurostat

Statistical Office of the European Union (Eurostat) compiles and publishes indicators on hourly labour costs on its website. The information is available on the European Union and Eurozone as a whole, as well as, on every country separately. It can be found in section: Statistics/ Population and social conditions/ Labour Market (including the Labour Force Survey)/ Labour costs/ Database:

http://epp.eurostat.ec.europa.eu/

Confidentiality

Confidentiality of the information provided by respondents is protected by the Section 17 of the Statistics Law stipulating rights and obligations of the Central Statistical Bureau of Latvia and other state authorities producing official statistics. Read more

Contact person on methodology

Name Surname Phone number Position Email
Lija Luste 67366917 daļas vadītājs Lija.Luste@csb.gov.lv

Last update

15.06.2018

Average and real monthly wages and salaries

Hourly labour costs

Labour costs and their structure

Explanation of symbols

-

Magnitude zero

0

Less than half of the unit employed

...

Data not available or too uncertain for presentation

X

Figure not applicable because column heading and stub line make entry impossible, absurd or meaningless

.

Data not released for confidentiality reasons

If data are absolute numbers

0

Magnitude zero