Press Release

In the 2nd quarter of 2020 hourly labour costs rose by 6.2 %

Seasonally and calendar non-adjusted data of the Central Statistical Bureau (CSB) show that, compared to the 2nd quarter of 2019, in the 2nd quarter of 2020 hourly labour costs increased by 6.2 % or 60 cents, reaching EUR 10.27. Seasonally adjusted data comprised 4.0 %.

Rise in hourly labour costs recorded in almost all economic activities

Compared to the 2nd quarter of 2019, seasonally non-adjusted data on the 2nd quarter of 2020 show that hourly labour costs increased in almost all economic activities, except of accommodation and food service activities and real estate activities, where during a year they fell by 4.0 % and 3.1 %, respectively. The sharpest growth was recorded in arts, entertainment and recreation (of 16.5 %), other service activities (15.8 %), construction activities (8.1 %), professional, scientific and technical activities (7.9 %) as well as public administration (7.5 %).

Hourly labour costs are influenced not only by changes in structure of wages, salaries and other labour costs, but also by the fluctuations in the number of hours worked and employees over the year.

Affected by the emergency situation declared due to COVID-19 changes in hourly labour costs mostly left impact on the drop of hours worked because of the downtime, dismissed employees and change in workloads, as well as due to rise of bonuses and premiums during the crisis.

The smallest increase in hourly labour costs was recorded in transportation and storage (of 0.1 %) and financial and insurance activities (0.7 %).

Highest labour costs still recorded in financial and insurance activities, while lowest in accommodation and food service activities.

In the 2nd quarter of 2020, the highest hourly labour costs were registered in financial and insurance activities (EUR 19.10), information and communication (EUR 16.07), electricity, gas, steam and air conditioning supply (EUR 14.00), public administration and defence, compulsory social security (EUR 12.64), as well as professional, scientific and technical activities (EUR 11.42).

The lowest hourly labour costs were recorded in accommodation and food service activities (EUR 6.61), real estate activities (EUR 8.09), other service activities (EUR 8.23), education (EUR 8.69), wholesale, retail sale; repair of motor vehicles and motorcycles (EUR 8.82), as well as administrative and support service activities (EUR 8.91).

Changes in hourly labour costs by main kind of economic activity
(seasonally non-adjusted data; EUR)

 

Hourly labour costs

of which wages and salaries

2019

Q2

2020

Q2

changes, %

2019

Q2

2020

Q2

changes, %

Total (B–S)

9.67

10.27

6.2

7.64

8.16

6.8

Mining and quarrying (B)

9.79

10.09

3.1

7.78

8.06

3.5

Manufacturing (C)

9.11

9.67

6.1

7.19

7.68

6.9

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

13.86

14.00

1.0

10.53

10.50

- 0.2

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

9.90

10.17

2.7

7.79

8.03

3.0

Construction (F)

9.06

9.80

8.1

7.22

7.86

8.8

Wholesale, retail sale;

repair of motor vehicles and motorcycles (G)

8.38

8.82

5.3

6.65

7.03

5.7

Transportation and storage (H)

9.85

9.86

0.1

7.70

7.66

- 0.4

 Accommodation and food service activities (I)

6.89

6.61

- 4.0

5.47

5.24

- 4.1

Information and communication (J)

15.71

16.07

2.3

12.43

12.85

3.4

Financial and insurance activities (K)

18.96

19.10

0.7

14.82

15.06

1.6

Real estate activities (L)

8.35

8.09

- 3.1

6.65

6.50

- 2.3

Professional, scientific and technical activities (M)

10.59

11.42

7.9

8.50

9.24

8.7

Administrative and support service activities (N)

8.69

8.91

2.6

6.93

7.11

2.6

Public administration and defence; compulsory social security (O)

11.75

12.64

7.5

9.24

10.00

8.2

Education (P)

8.23

8.69

5.6

6.55

6.98

6.5

Human health and social work activities (Q)

9.97

10.60

6.4

7.89

8.46

7.2

Arts, entertainment and recreation (R)

7.87

9.17

16.5

6.28

7.38

17.6

Other service activities (S)

7.11

8.23

15.8

5.77

6.74

16.7

 

Methodological explanations

Labour costs include gross wages and salaries and other labour costs. Hourly labour costs are calculated by dividing the sum of labour costs by the number of hours worked.

Wages and salaries are regular and irregular direct wages and salaries – basic salary (monthly, wage), payment for the time worked or job completed, regular and irregular premiums and bonuses, payments for days not worked (vacation and other days not worked), state mandatory social insurance contributions paid by the employees, and personal income tax. In line with the regulatory enactment of the European Union (EU), when compiling data on labour costs, wages and salaries 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 the employer, employers’ contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions etc.), support payments from the employer, awards, gifts, payments for sick list A, severance pay, entrepreneurship state risk duty.

According to the EU regulatory enactments, hourly labour costs and changes thereof are calculated for sectors B–S of the NACE Rev. 2.

Indicator changes have been calculated from not rounded values.

 

Media requests:
Communication Section
E-mail:
media@csb.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Natālija Oščenkova
Wage Statistics Section
E-mail:
Natalija.Oscenkova@csb.gov.lv
Phone: +371 67366971

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