Press release No. 116 of 11 March 2021
Labour costs per hour worked, 4th quarter of 2020
+2.1% on the previous quarter (seasonally and calendar adjusted)
+3.5% on the same quarter a year earlier (calendar adjusted)
WIESBADEN - Labour costs per hour worked in Germany were up by a seasonally and calendar adjusted 2.1% in the fourth quarter of 2020 compared with the third quarter of 2020. The Federal Statistical Office (Destatis) also reports that the fourth quarter of 2020 - like the first and second quarters - was more heavily affected by the measures taken to contain the coronavirus pandemic than the third quarter. As a result of these measures, the number of hours worked declined in particular, which in turn led to a large arithmetic increase in the cost per hour worked compared with the previous quarter.
Compared with the fourth quarter of 2019, the quarter before restrictions were imposed due to the coronavirus pandemic in Germany, labour costs increased by 3.5% on a calendar adjusted basis in the fourth quarter of 2020. Labour costs consist of gross earnings and non-wage costs. In calendar adjusted terms, the costs of gross earnings in the fourth quarter of 2020 rose by 3.2% year on year, while non-wage costs were up 5.0%.
Increase in labour costs in Germany slightly above the EU average in the third quarter of 2020
The comparison between labour costs in Germany and in other Member States of the European Union (EU) is based on industry and the support services sector. Among others, the public service and the health sector are not included here. According to those results, the price of one hour worked in Germany rose by a calendar adjusted 1.9% in the third quarter of 2020 on the same quarter a year earlier. This means that the increase recorded in Germany was higher than the average labour cost increase in the EU (+1.6%). The highest growth rates in the EU were recorded in Hungary (+5.9%), Portugal (+5.6%) and Romania (+5.2%). In France, the increase in labour costs (+2.2%) was similar to that in Germany. Decreasing labour cost index values were observed in five EU Member States; the most significant decline was seen in Malta (-11.3%).
Methodological notes:
The differing comparative periods must be taken into account in all press releases on short-term indicators. Short-term economic monitoring focuses on comparisons with the previous month or previous quarter. These reflect short-term economic trends. A comparison with the previous year is intended to offer a long-term comparison of levels and is not subject to seasonal fluctuations. Due to strong temporary decreases and increases during the current coronavirus crisis, the results of month-on-month/quarter-on-quarter and year-on-year comparisons may differ considerably. Both of the two perspectives are important: what is the short-term economic trend compared with the previous month/previous quarter, and how far has the catching-up process gone compared with the previous year’s level? In order to provide also a direct comparison with the pre-crisis level, all press releases on short-term indicators available in seasonally adjusted form will, for the time being, include a comparison with February 2020 or the fourth quarter of 2019.
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 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 number of 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 index of non-wage costs was revised upwards from +1.4% to +1.7% for the third quarter of 2020.
| Year, quarter | Index of labour costs, total | Index of gross earnings | Index of non-wage costs | |
|---|---|---|---|---|
| 1 Calendar-adjusted, X-13-JDEMETRA+. 2 Calendar and seasonally adjusted, X-13-JDEMETRA+. | ||||
| Change on the previous year in % 1 | ||||
| 2011 | 2.7 | 2.8 | 2.5 | |
| 2012 | 3.1 | 3.4 | 2.1 | |
| 2013 | 0.8 | 1.4 | -0.9 | |
| 2014 | 2.5 | 2.2 | 3.5 | |
| 2015 | 2.9 | 2.7 | 3.3 | |
| 2016 | 2.3 | 2.2 | 2.5 | |
| 2017 | 2.7 | 2.5 | 3.5 | |
| 2018 | 2.5 | 2.7 | 1.8 | |
| 2019 | 2.8 | 3.0 | 2.2 | |
| 2020 | 3.4 | 3.3 | 3.7 | |
| Change on the same quarter a year earlier in % 1 | ||||
| 2018 | 1st quarter | 2.5 | 2.5 | 2.3 |
| 2nd quarter | 2.3 | 2.4 | 2.2 | |
| 3rd quarter | 3.0 | 3.3 | 2.1 | |
| 4th quarter | 2.2 | 2.7 | 0.5 | |
| 2019 | 1st quarter | 1.9 | 2.4 | 0.6 |
| 2nd quarter | 3.6 | 3.8 | 2.9 | |
| 3rd quarter | 2.8 | 3.0 | 1.8 | |
| 4th quarter | 3.0 | 2.9 | 3.2 | |
| 2020 | 1st quarter | 4.4 | 4.7 | 3.5 |
| 2nd quarter | 3.9 | 3.8 | 4.4 | |
| 3rd quarter | 1.7 | 1.7 | 1.7 | |
| 4th quarter | 3.5 | 3.2 | 5.0 | |
| Change on the previous quarter in % 2 | ||||
| 2018 | 1st quarter | 1.2 | 1.1 | 1.6 |
| 2nd quarter | -0.1 | 0.1 | -1.2 | |
| 3rd quarter | 1.2 | 1.2 | 1.2 | |
| 4th quarter | 0.0 | 0.3 | -0.9 | |
| 2019 | 1st quarter | 0.8 | 0.7 | 1.3 |
| 2nd quarter | 1.5 | 1.6 | 1.3 | |
| 3rd quarter | 0.4 | 0.5 | 0.0 | |
| 4th quarter | 0.3 | 0.1 | 0.7 | |
| 2020 | 1st quarter | 2.2 | 2.5 | 1.3 |
| 2nd quarter | 1.0 | 0.6 | 2.3 | |
| 3rd quarter | -1.7 | -1.5 | -2.5 | |
| 4th quarter | 2.1 | 1.6 | 4.0 | |
| Member States of the European Union | Change in 3rd quarter of 2020 on 3rd quarter of 2019 1 | Year 2019 2 | ||
|---|---|---|---|---|
| Index of labour costs, total | Index of gross earnings | Index of non-wage costs | Labour costs per hour worked | |
| in % 3 | EUR | |||
1 Source: Eurostat Online Database of 8 February 2021 and calculations by Destatis. / = No figure due to limited reliability | ||||
| European Union | 1.6 | 2.3 | -0.8 | 27.50 |
| Euro currency area | 1.4 | 2.2 | -1.1 | 31.30 |
| Belgium | 1.3 | 1.3 | 1.3 | 40.80 |
| Bulgaria | 2.6 | 2.7 | 2.0 | 6.00 |
| Denmark | 1.3 | 1.2 | 1.6 | 46.00 |
| Germany | 1.9 | 1.9 | 2.0 | 35.90 |
| Estonia | 0.5 | 0.3 | 1.1 | 13.50 |
| Finland | 0.1 | 1.8 | -7.9 | 34.80 |
| France | 2.2 | 3.0 | 0.3 | 37.30 |
| Greece | 3.7 | 3.4 | 4.5 | 16.60 |
| Ireland | -4.6 | 2.6 | / | 31.60 |
| Italy | 0.7 | 0.6 | 0.9 | 27.90 |
| Croatia | -3.0 | -1.9 | -9.4 | 11.10 |
| Latvia | 4.3 | 4.0 | 5.8 | 10.40 |
| Lithuania | 3.7 | 8.9 | / | 9.50 |
| Luxembourg | 1.8 | 1.6 | 3.3 | 41.40 |
| Malta | -11.3 | -1.6 | / | 14.20 |
| Netherlands | -1.1 | 5.0 | -24.6 | 35.30 |
| Austria | 1.5 | 0.5 | 4.5 | 35.00 |
| Poland | 3.6 | 3.6 | 3.6 | 10.40 |
| Portugal | 5.6 | 5.9 | 4.2 | 13.70 |
| Romania | 5.2 | 5.2 | 5.1 | 7.30 |
| Sweden | 1.2 | 1.6 | 0.4 | 39.00 |
| Slovakia | 3.5 | 5.7 | -2.6 | 12.70 |
| Slovenia | 1.2 | 1.4 | 0.0 | 19.20 |
| Spain | 1.6 | 1.4 | 2.0 | 21.40 |
| Czech Republic | 4.5 | 5.2 | 2.6 | 13.60 |
| Hungary | 5.9 | 6.7 | 1.3 | 10.70 |
| Cyprus | -6.2 | -2.1 | -29.1 | 15.30 |
Detailed data and time series relating to the labour cost indices by branch of economic activity are available in table 62421-0001 of the GENESIS-Online database.
