Hourly labour costs in the euro area rose by 2.1% in the year up to the first quarter of 2010, compared with 1.7% for the previous quarter, figures issued today by the EU show. In the EU27, the annual rise was 2.2% up to the first quarter of 2010, compared with 2.0% for the previous quarter.

The increase in Malta was of 0.1 per cent. The highest annual increases in hourly labour costs were registered in Bulgaria (+10.5%) and Romania (+7.4%). The highest annual decreases were observed in Lithuania (-11.0%), Latvia (-7.2%), Estonia (-5.5%) and the Czech Republic (-3.1%).

The two main components of labour costs are wages and salaries and non-wage costs. In the euro area, wages and salaries per hour worked grew by 2.0% in the year up to the first quarter of 2010, and the non-wage component by 2.1%, compared with 1.6% and 2.0% respectively for the fourth quarter of 2009. In the EU27, hourly wages and salaries rose by 2.3% and the non-wage component by 1.9% in the year up to the first quarter of 2010, compared with 1.9% and 2.5% respectively for the previous quarter.

The breakdown by economic activity shows that in the euro area hourly labour costs rose by 1.8% in industry, 2.1% in construction and 2.2% in services in the year up to the first quarter of 2010. In the EU27, labour costs per hour grew by 1.8% in industry, 1.4% in construction and 2.5% in services.

The highest annual increases in hourly labour costs were registered in Bulgaria (+10.5%) and Romania (+7.4%). The highest annual decreases were observed in Lithuania (-11.0%), Latvia (-7.2%), Estonia (-5.5%) and the Czech Republic (-3.1%).