Press Labour costs in the 1st quarter of 2019 up 2.5% on the 1st quarter of 2018

Press release No. 213 of 7 June 2019

Labour costs per hour worked, 1st quarter of 2019
+1.1% on the previous quarter (seasonally and calendar adjusted)
+2.5% on the same quarter a year earlier (calendar adjusted)

WIESBADEN – In Germany, labour costs per hour worked rose a calendar adjusted 2.5% from the first quarter of 2018 to the first quarter of 2019. The Federal Statistical Office (Destatis) also reports that labour costs were up 1.1% in seasonally and calendar adjusted terms on the previous quarter.

Labour costs consist of gross earnings and non-wage costs. In calendar adjusted terms, the costs of gross earnings rose by 2.5% in the first quarter of 2019 compared with the first quarter of 2018, while non-wage costs were up 2.4%.

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 health subsectors are not included here. In 2018, Germany ranked sixth in the EU regarding labour costs per hour worked (35.00 euros). Compared with the EU average of 26.60 euros, German employers in industry and the support services sector paid 32% more per hour worked.

Compared with a year earlier, the price of one hour worked in Germany in 2018 rose a calendar adjusted 2.4%. In the entire EU, the increase in labour costs averaged 2.8% in that period. The highest growth rates within the EU were recorded in Latvia (+12.1%), Romania (+10.5%) and Lithuania (+10.0%). Increases in labour costs were lowest in Malta (+0.1%) and Finland (+1.4%). In our neighbouring country France, the increase in labour costs (+2.8%) was slightly higher than in Germany.
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.

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
20101.30.73.3
20112.72.82.6
20123.13.32.1
20130.81.4-0.9
20142.52.23.5
20152.92.73.3
20162.32.22.5
20172.72.53.5
20182.32.31.9
Change on the same quarter a year earlier in % 1
20171st quarter3.02.16.2
2nd quarter3.13.42.3
3rd quarter2.82.54.0
4th quarter2.02.01.7
20181st quarter2.42.22.8
2nd quarter2.22.22.0
3rd quarter2.62.72.4
4th quarter2.02.30.7
20191st quarter2.52.52.4
Change on the previous quarter in % 2
20171st quarter0.60.60.8
2nd quarter0.20.4-0.4
3rd quarter0.50.40.9
4th quarter0.70.70.7
20181st quarter0.80.71.1
2nd quarter0.30.5-0.6
3rd quarter0.80.81.0
4th quarter0.20.4-0.7
20191st quarter1.10.82.3
EU-wide comparison of labour costs in business economy
Status of calculations: 4thquarter of 2018
Index of labour costs, totalChange in 2018 on 2017 1Year 2018 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 23 May 2019 and calculations by Destatis.
2 Source: Eurostat Online Database of 26 March 2018 and calculations by Destatis.
3 Calendar adjusted applying national methods.
/ = No figure due to limited reliability
European Union2.82.82.626.60
Euro currency area2.32.22.923.50
Belgium1.62.20.240.00
Bulgaria6.56.28.05.30
Denmark2.12.21.544.70
Germany2.42.52.035.00
Estonia5.65.75.412.60
Finland1.42.1-1.634.50
France2.82.04.536.50
Greece2.42.04.316.10
Ireland3.23.60.830.50
Italy1.60.93.627.20
Croatia8.38.57.110.90
Latvia12.110.717.99.70
Lithuania10.09.710.69.20
Luxembourg1.61.70.340.30
Malta0.10.1-0.614.10
Netherlands2.21.93.834.70
Austria2.92.83.334.90
Poland7.07.07.09.90
Portugal1.81.81.913.30
Romania10.5//6.50
Sweden1.71.91.339.30
Slovakia6.76.57.411.80
Slovenia3.33.61.918.30
Spain1.81.91.421.30
Czech Republic7.87.87.812.70
Hungary9.011.3-1.89.90
United Kingdom3.32.95.026.30
Cyprus2.92.92.914.40

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.

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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