Non-wage costs in total labour costs for the economy was 23.7% in the EU and 25.6% in the euro area in 2018, ranging from 6.1% in Malta to 32.6% in France, Eurostat said.

It said that in 2018, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €27.4 in the European Union and €30.6 in the euro area.

The average masked significant gaps between EU states, with the lowest hourly labour costs recorded in Bulgaria (€5.4), Romania (€6.9), Lithuania (€9), Hungary (€9.2) and Latvia (€9.3), and the highest in Denmark (€43.5), Luxembourg (€40.6), Belgium (€39.7), Sweden (€36.6), the Netherlands (€35.9) and France (€35.8).

Hourly labour costs in industry were €27.4 in the EU and €33.2 in the euro area.

In services, they were €27 and €29.6, respectively. In construction, hourly labour costs were €25 in the EU and €27.6 in the euro area. In the mainly non-business economy (excluding public administration), they were €28.5 and €30.8, respectively.

Labour costs consist of wages and salaries and non-wage costs, such as employers' social contributions. The share of non-wage costs in total labour costs for the whole economy was 23.7% in the EU and 25.6% in the euro area. It ranged from 6.1% in Malta to 32.6% in France.

Compared with the previous year, hourly labour costs in the whole economy expressed in € rose by 2.7% in the EU and by 2.2% in the euro area.

Within the euro area, the largest increases were recorded in Latvia (+12.9%), Lithuania (+10.4%), Estonia and Slovakia (both +6.8%). Hourly labour costs increased least in Malta (+0.4%), Finland (+1.2%), Spain (+1.3%) and Portugal (+1.4%).

Eurostat noted that when comparing labour cost estimates over time, levels expressed in national currency should be used to eliminate the influence of exchange rate movements.

For member states outside the euro area in 2018, the largest increases in hourly labour costs in the whole economy, expressed in national currency, were observed in Romania (+13.3%) and Hungary (+9.8%). They increased least in Denmark (+1.9%), Sweden (+2.3%) and the United Kingdom (+3.3%).

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.