Press Labour costs in the 2nd quarter of 2019 up 3.2% year on year

Press release No. 338 of 6 September 2019

Labour costs per hour worked, 2nd quarter of 2019
+0.8% on the previous quarter (seasonally and calendar adjusted)
+3.2% on the same quarter a year earlier (calendar adjusted)

WIESBADEN – In Germany, labour costs per hour worked rose a calendar adjusted 3.2% in the second quarter of 2019 compared with the same quarter a year earlier. The Federal Statistical Office (Destatis) also reports that labour costs were up 0.8% 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 in the second quarter of 2019 rose by 3.2% year on year, while non-wage costs were up 3.3%.

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. Rates of labour cost change are available for all EU Member States for the first quarter of 2019. According to those results, the price of one hour worked in Germany rose by 2.5% in calendar adjusted terms on the first quarter of 2018.

In the EU as a whole, the increase in labour costs also averaged 2.5% in that period. The highest growth rates within the EU were observed in Romania (+13.7%), Bulgaria (+12.3%) and Hungary (+11.0%). In all three countries the labour cost level is below average. Labour costs declined in Portugal (-0.3%). In France, the increase in labour costs (+2.8%) 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
20101.30.73.3
20112.72.82.5
20123.13.42.1
20130.81.4-0.9
20142.52.23.5
20152.92.73.3
20162.32.22.5
20172.82.53.6
20182.22.41.4
Change on the same quarter a year earlier in % 1
20171st quarter3.02.16.4
2nd quarter3.23.42.5
3rd quarter2.92.54.1
4th quarter2.02.11.8
20181st quarter2.22.32.1
2nd quarter2.12.22.0
3rd quarter2.42.71.5
4th quarter1.92.30.2
20191st quarter2.52.71.8
2nd quarter3.23.23.3
Change on the previous quarter in % 2
20171st quarter0.80.61.3
2nd quarter0.00.3-1.1
3rd quarter0.70.51.3
4th quarter0.70.70.6
20181st quarter0.80.71.0
2nd quarter0.00.3-0.9
3rd quarter0.90.90.8
4th quarter0.20.4-0.5
20191st quarter1.31.02.3
2nd quarter0.80.80.8
EU-wide comparison of labour costs in business economy
Status of calculations: 1st quarter of 2019
Index of labour costs, totalChange 1st quarter 2019 to 1st quarter 2018 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 4 September 2019 and calculations by Destatis.
2 Source: Eurostat Online Database of 30 April 2018 and calculations by Destatis.
3 Calendar adjusted applying national methods.
European Union2.52.52.226.60
Euro currency area2.42.52.423.50
Belgium2.02.60.640.00
Bulgaria12.312.112.95.30
Denmark1.71.52.844.70
Germany2.52.71.835.00
Estonia7.27.27.212.60
Finland0.81.6-2.434.50
France2.82.92.436.50
Greece2.20.87.716.10
Ireland2.22.7-0.730.50
Italy3.12.15.827.20
Croatia4.65.21.610.90
Latvia7.97.39.99.70
Lithuania3.7//9.20
Luxembourg4.34.53.040.30
Malta0.20.11.014.10
Netherlands1.41.41.634.70
Austria1.71.71.434.90
Poland5.45.45.49.90
Portugal-0.3-0.40.113.30
Romania13.713.89.76.50
Sweden1.42.3-0.739.30
Slovakia8.18.08.411.80
Slovenia7.78.25.218.30
Spain1.41.12.221.30
Czech Republic7.37.47.212.70
Hungary11.011.011.09.90
United Kingdom1.41.41.426.30
Cyprus2.92.55.714.40

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.

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 of the labour cost index was revised downwards from +2.7% to +2.5% for the first quarter of 2019.

Seasonal and calendar adjustment were made using X13 JDemetra+ for the first time. The underlying mathematical-statistical method does not differ fundamentally from the previously used X-12-ARIMA procedure.

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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