Changes in labour costs in the 3rd quarter of 2009
Compared to the 3rd quarter of the previous year hourly labour costs in the country1) in the 3rd quarter of 2009 reduced by LVL 0.16 or by 3.9% (seasonally non-adjusted data), according to the data of Central Statistical Bureau. But according to seasonally adjusted2) data they diminished by 3.1%.
|Changes of hourly labour costs over corresponding quarter|
of previous year, %
Compared to the 3rd quarter of previous year hourly labour costs in the 3rd quarter of this year in public administration and defence, compulsory social security decreased by LVL 1.39 or by 22.2%, in arts, entertainment and recreation – by LVL 0.53 or by 13.6%, in human health and social work activities – by LVL 0.52 or by 12.7%, in electricity, gas, steam and air conditioning supply – by LVL 0.49 or by 7.4%, in education – by LVL 0.41 or by 7.6%.
Hourly labour costs and their changes by kind of economic activity (seasonally non - adjusted data, by NACE Rev. 2 classification)
3rd quarter 2008
3rd 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
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 3rd quarter of the last year the number of hours worked in the 3rd quarter of 2009 reduced by 27.3%, but labour costs during this time period decreased by 30.1%.
Examining share of hourly labour costs in wages and salaries and in other labour costs, it may be concluded that hourly labour costs have reduced by 4.7%, but other labour costs – only by 0.5%. Small reduction of other hourly labour costs may be explained with increase of severance payment – in 3rd quarter of 2009, compared to the corresponding period of previous year, it has increased from LVL 3.7 to 9.2 mln or 2.5 times.
Labour costs, hours worked and their changes (seasonally non-adjusted data)
3rd quarter 2008
3rd 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
1) This information does not include data on agriculture, forestry and fishing.
2) 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.
Prepared byWages Statistics Section