Hourly labour costs in Cyprus for the whole of the country`s economy (excluding agriculture and public administration), in companies with 10 or more employees increased by 1.1% in 2017, compared to 2016, according to an estimate issued by Eurostat on Monday. Hourly labour costs increased from €15.8 to €16, while the non – wage component of that cost increased simultaneously by 16,7%.
Furthermore, hourly labour costs in companies with 10 or more employees, stood at €15.9 in the Business economy, €14.6 in the Industry, €13.9 in Construction, €16.5 in Services and at €17.5 in the mainly “nonbusiness economy, excluding public administration.
According to Eurostat, in 2017, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €26.8 in the European Union (EU) and €30.3 in the euro area. The lowest hourly labour costs recorded in Bulgaria (€4.9), Romania (€6.3), Lithuania (€8.0), Latvia (€8.1), Hungary (€9.1) and Poland (€9.4), and the highest in Denmark (€42.5), Belgium (€39.6), Luxembourg (€37.6), Sweden (€36.6) and France (€36.0).
Hourly labour costs in industry were €27.4 in the EU and €33.4 in the euro area. In services, they were €26.6 and €29.3, respectively. In construction, hourly labour costs were €23.7 in the EU and €26.7 in the euro area. In the mainly non-business economy (excluding public administration), they were €27.2 and €30.1, respectively.
Labour costs consist of wages and salaries and non-wage costs (e.g. employers` social contributions). The share of non-wage costs in total labour costs for the whole economy was 24.0% in the EU and 25.9% in the euro area. It ranged from 6.7% in Malta to 32.8% in France.
In 2017, compared to previous year, hourly labour costs in the whole economy expressed in € rose by 2.3% in the EU and by 1.9% in the euro area. When comparing labour cost estimates over time, levels expressed in national currency should be used to eliminate the influence of exchange rate movements. Within the euro area, the largest increases were recorded in the Baltic Member States: Lithuania (+9.0%), Estonia (+7.4%) and Latvia (+7.0%).
The only decrease was observed in Finland (-1.5%). For member states outside the euro area in 2017, the largest increase in hourly labour costs in the whole economy, expressed in national currency, were observed in Romania (+17.1%) and Bulgaria (+12.0%).