Press Labour costs in the 3rd quarter of 2018 up 2.7% on the 3rd quarter of 2017

Press release No. 475 of 7 December 2018

Labour costs per hour worked, 3rd quarter of 2018
+1.0% on the previous quarter (seasonally and calendar adjusted)
+2.7% on the same quarter a year earlier (calendar adjusted)

[BILD] WIESBADEN – In Germany, labour costs per hour worked rose a calendar adjusted 2.7% from the third quarter of 2017 to the third quarter of 2018. The Federal Statistical Office (Destatis) also reports that labour costs were up 1.0% in seasonally and calendar adjusted terms on the previous quarter.

Labour costs consist of gross earnings and non-wage costs. The costs of gross earnings in the third quarter of 2018 increased a calendar adjusted 2.7% year on year, while non-wage costs were up 2.5%.

The international comparison with the other Member States of the European Union (EU) is based on industry and the support services sector. Among other things, the public service and the health sector are not included here. For the second quarter of 2018, rates of labour cost change are available for all EU Member States. According to those results, the price of one hour worked in Germany rose a calendar adjusted 2.4% on the same quarter of the previous year. In the entire EU, the increase in labour costs averaged +2.8% in that period, which is higher than the rate recorded for Germany. The highest growth rates within the EU were observed in Romania (+12.4%), Latvia (+11.2%), Croatia (+10.8%) and Lithuania (+10.1%). In all four countries the labour cost level is below 10 euros. The EU average in 2017 was 26.30 euros. Germany ranked sixth, with labour costs per hour worked amounting to 34.20 euros. The lowest increase in labour costs was recorded in Luxembourg (+0.6%) and Malta (+1.2%). In France, the increase in labour costs (+3.0%) was somewhat higher than in Germany.

Labour cost indices for industry and the service sector in Germany 
Year, quarter Index of labour
costs, total
Index of gross
earnings
Index of
non-wage costs
1 Calendar-adjusted, Census X-12-ARIMA
2 Calendar and seasonally adjusted, Census X-12-ARIMA
Change on the previous year in % 1
20092.72.53.5
20101.30.73.3
20112.72.82.6
20123.03.32.0
20130.81.4-0.9
20142.52.23.5
20152.92.73.3
20162.32.22.5
20172.72.53.5
Change on the same quarter a year earlier in % 1
20161st quarter2.93.12.3
2nd quarter1.50.93.4
3rd quarter2.12.31.7
4th quarter2.72.82.6
20171st quarter3.02.16.2
2nd quarter3.13.42.3
3rd quarter2.92.54.2
4th quarter2.02.01.7
20181st quarter2.42.23.1
2nd quarter2.12.22.0
3rd quarter2.72.72.5
Change on the previous quarter in % 2
20161st quarter0.61.3-1.9
2nd quarter-0.1-0.92.9
3rd quarter0.91.4-0.6
4th quarter1.31.02.3
20171st quarter0.70.51.1
2nd quarter0.30.5-0.3
3rd quarter0.60.51.1
4th quarter0.40.5-0.1
20181st quarter0.90.62.1
2nd quarter0.30.6-0.9
3rd quarter1.00.91.4

 

EU-wide comparison of labour costs in business economy
Status of calculations: 2nd quarter of 2018
Index of labour costs, totalChange in the 2nd quarter of 2018 on the 2nd quarter of 2017 1Year 2017 2
Index of labour costs,
total
Index of gross
earnings
Index of
non-wage costs
Labour costs per
hour worked
in % 3EUR
1 Source: Eurostat Online Database of 30 November 2018 and calculations by Destatis based on the Eurostat Online Database.
2 Source: Eurostat Online Database of 30 April 2018 and calculations by Destatis based on the Eurostat Online Database.
3 Calendar adjusted applying national methods.
/ = No figure due to limited reliability
European Union2.82.82.726.30
Euro currency area2.42.23.130.60
Belgium1.72.20.341.70
Bulgaria8.28.09.34.90
Denmark2.22.50.743.60
Germany2.42.51.934.20
Estonia3.73.83.412.20
Finland2.12.9-0.933.40
France3.02.24.936.80
Greece3.92.68.814.30
Ireland2.93.6-1.629.80
Italy2.31.74.027.30
Croatia10.811.09.49.20
Latvia11.29.617.68.50
Lithuania10.110.010.48.20
Luxembourg0.60.9-1.737.30
Malta1.21.30.012.80
Netherlands1.81.43.734.10
Austria2.92.83.433.70
Poland6.56.56.59.00
Portugal3.23.03.913.40
Romania12.4//6.10
Sweden1.81.91.441.70
Slovakia7.67.48.011.40
Slovenia5.15.52.916.90
Spain1.81.81.621.30
Czech Republic8.38.38.211.30
Hungary8.310.6-2.09.20
United Kingdom2.82.64.326.80
Cyprus2.82.82.715.90

Methodological notes
The rates of labour cost change in countries outside the euro area are measured in the relevant national currency and, consequently, are not currency adjusted.
The rates of labour cost change are based on the results of the labour cost index. The latter measures the change in labour costs and additionally provides a breakdown of labour costs into their two components, namely gross earnings and non-wage costs. In all three indices, the costs borne by employers are compared with the hours actually worked by employees.

Revisions in the data sources used for calculating the labour cost index led to adjustments of the growth rates of the labour cost index. For instance, the calendar adjusted year-on-year rate of increase in the labour cost index was revised upwards from +2.0% to +2.1% for the second quarter of 2018.

Detailed data and time series relating to the labour cost indices by branches of economic activity can be called up free of charge via table 62421-0001 in the GENESIS-Online database.

Data for European comparisons are available under Europe in Figures.

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