On changes of labour costs in 4th quarter of 2009
Compared to the 4th quarter of 2008, hourly labour costs in the country in the 4th quarter of 2009 reduced by 52 santims or by 12.5%, according to seasonally non-adjusted data of Central Statistical Bureau. But according to seasonally adjusted1) data they decreased by 13.1%.
Compared to the 3rd quarter of previous year, the reduction in the 4th quarter of 2009 according to seasonally non-adjusted data comprised 30 santims or 8.0%, but according to seasonally adjusted data – 9.8%.
But in 2009 hourly labour costs, in turn, according to seasonally non - adjusted data constituted LVL 3.92, and in comparison with 2008 they diminished by 8 santims or by 2.0%.
|Changes of hourly labour costs over corresponding quarter|
of previous year, %
Compared to the 4th quarter of 2008, hourly labour costs in education in the 4th quarter of 2009 reduced by LVL 1.67 or by 36.6%, in public administration and defence; compulsory social security – by LVL 1.62 or by 26.8%, in health and social care – by LVL 0.74 or by 18.6%, in arts, entertainment and recreation – by LVL 0.67 or by 18.2%.
Hourly labour costs and their changes in the 4th quarter of 2009 by kind of economic activity (seasonally unadjusted data, by NACE Rev. 2 classification)
4th quarter 2008
4th quarter 2009
Total excluding agriculture and fishing
Mining and quarrying
Electricity, gas, steam and air conditioning supply
Water supply; sewerage, waste management and remediation activities
Wholesale and retail trade; repair of motor vehicles and motorcycles
Transportation and storage
Accommodation and food service activities
Information and communication
Financial and insurance activities
Real estate activities
Professional, scientific and technical activities
Administrative and support service activities
Public administration and defence; compulsory social security
Human health and social work activities
Arts, entertainment and recreation
Other service activities
Due to the rapid reduction of the number of employees and due to the fact that part of them changed their working time from full-time to part-time work, compared to the 4th quarter of the 2008 the number of hours worked in the 4th quarter of 2009 reduced by 25.4%, but labour costs during this time period decreased by 34.7%.
Examining share of hourly labour costs in wages and salaries and in other labour costs, it may be concluded that hourly wages and salaries have reduced by 12.8%, but other labour costs – by 11.4%.
Labour costs, hours worked and their changes in the 4th quarter of 2009 (seasonally unadjusted data)
4th quarter 2008
4th quarter 2009
Labour costs, total, mln LVL
wages and salaries
other labour costs
Hours worked, mln
Total hourly labour costs, LVL
Hourly wages and salaries
other hourly labour costs
Both seasonally adjusted and seasonally not adjusted data are available in the data base of the Central Statistical Bureau.
1) Influence of seasonality and varying number of working days has been averted.
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, state 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.
Prepared byWages Statistics Section