Press Labour costs up 3.0% in 2019

Press release No. 086 of 10 March 2020

Labour costs per hour worked, 2019
+3.0% on a year earlier (calendar adjusted)
Labour costs per hour worked, 4th quarter of 2019
0.0% on the previous quarter (seasonally and calendar adjusted)
+3.0% on the same quarter a year earlier (calendar adjusted)

WIESBADEN – In Germany, labour costs per hour worked rose a calendar adjusted 3.0% in 2019 compared with a year earlier. The Federal Statistical Office (Destatis) also reports that the costs of gross earnings increased by 2.9%, while non-wage costs were up 3.2%.

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Compared with the 4th quarter of 2018, labour costs in the 4th quarter of 2019 rose a calendar adjusted 3.0%. The costs of gross earnings were up by 2.7% and non-wage costs by 4.2%. Compared with the previous quarter, labour costs remained unchanged after seasonal and calendar adjustment.

Average increase in labour costs across the EU: +2.9% in the 3rd quarter of 2019
The international comparison with other Member States of the European Union (EU) is based on industry and the support services sector. The public service and the health sector, among others, are not included here. Rates of labour cost change for the third quarter of 2019 are available for all EU Member States.

In the relevant sectors, the price of one hour worked in Germany rose a calendar adjusted 3.0% in the third quarter of 2019 on the same quarter of the previous year. In the entire EU, the increase in labour costs averaged +2.9% over that period, which is slightly lower than the rate recorded for Germany. The highest growth rates within the EU were observed in Romania (+12.8%), Hungary (+9.9%) and Bulgaria (+9.7%). In these countries the labour cost level is below 10 euros. Average labour costs were 26.60 euros across the EU and 35.00 euros in Germany. The lowest increase in labour costs in the third quarter of 2019 was recorded in Finland (+0.2%) and Luxembourg (+0.4%). In our neighbouring country France, the increase in labour costs (+2.2%) was lower than in Germany. As the United Kingdom ceased to be part of the European Union on 1 February 2020, it is not included in the comparison anymore. However, average EU labour costs for 2018 still contain the results for the United Kingdom.

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-13-JDEMETRA+.
2 Calendar and seasonally adjusted, Census X-13-JDEMETRA+.
Change on the previous year in % 1
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
20172.72.43.5
20182.42.61.5
20193.02.93.2
Change on the same quarter a year earlier in % 1
20171st quarter3.02.06.4
2nd quarter3.13.32.4
3rd quarter2.82.44.0
4th quarter1.92.01.8
20181st quarter2.42.42.3
2nd quarter2.22.31.8
3rd quarter2.93.21.8
4th quarter2.12.70.2
20191st quarter2.52.71.8
2nd quarter3.33.23.6
3rd quarter3.13.13.2
4th quarter3.02.74.2
Change on the previous quarter in % 2
20171st quarter0.80.61.5
2nd quarter0.00.3-1.2
3rd quarter0.60.41.2
4th quarter0.70.70.6
20181st quarter1.00.91.4
2nd quarter-0.10.3-1.3
3rd quarter1.21.31.1
4th quarter0.00.2-0.8
20191st quarter1.30.92.6
2nd quarter0.80.80.8
3rd quarter1.01.10.6
4th quarter0.0-0.20.4
EU-wide comparison of labour costs in business economy
Status of calculations: 3rd quarter of 2019
Member States of the
European Union
Change 3rd quarter 2019 to 3rd 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 6 March 2020 and calculations by Destatis.
2 Source: Eurostat Online Database of 30 April 2018 and calculations by Destatis.
3 Calendar adjusted applying national methods.
a Including United Kingdom
European Union2.93.12.626.60A
Euro currency area2.62.62.523.50
Belgium2.53.01.140.00
Bulgaria9.79.510.95.30
Denmark2.52.62.244.70
Germany3.03.12.835.00
Estonia6.46.46.312.60
Finland0.20.9-2.934.50
France2.21.92.936.50
Greece5.34.77.516.10
Ireland4.13.57.830.50
Italy1.91.53.027.20
Croatia5.26.3-0.910.90
Latvia7.87.78.09.70
Lithuania1.9//9.20
Luxembourg0.40.40.540.30
Malta1.31.40.514.10
Netherlands3.02.64.534.70
Austria3.02.93.134.90
Poland6.26.26.39.90
Portugal4.03.94.213.30
Romania12.812.811.96.50
Sweden1.92.80.039.30
Slovakia5.75.46.411.80
Slovenia3.23.22.818.30
Spain2.31.93.321.30
Czech Republic7.17.26.912.70
Hungary9.911.61.19.90
Cyprus5.33.218.214.40

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 exchange-rate adjusted.

The rates of change of labour costs 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 +3.0% to +3.1% for the third quarter of 2019.

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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