Hourly labour costs in Cyprus rise by 1.1% in 2017, according to Eurostat

Hourly labour costs in Cyprus for the whole of the countrys economy (excluding agriculture and public administration), in enterprises 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 Euros 15.8 to Euros 16, while the non – wage component of that cost increased simultaneously by 16,7%.

Furthermore, hourly labour costs in enterprises with 10 or more employees, stood at Euros 15.9 in the Business economy, Euros 14.6 in the Industry, Euros 13.9 in Construction, Euros 16.5 in Services and at Euros 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 Euros 26.8 in the European Union (EU) and Euros 30.3 in the euro area. The lowest hourly labour costs recorded in Bulgaria (Euros 4.9), Romania (Euros 6.3), Lithuania (Euros 8.0), Latvia (Euros 8.1), Hungary (Euros 9.1) and Poland (Euros 9.4), and the highest in Denmark (Euros 42.5), Belgium (Euros 39.6), Luxembourg (Euros 37.6), Sweden (Euros 36.6) and France (Euros 36.0).

Hourly labour costs in industry were Euros 27.4 in the EU and Euros 33.4 in the euro area. In services, they were Euros 26.6 and Euros 29.3, respectively. In construction, hourly labour costs were Euros 23.7 in the EU and Euros 26.7 in the euro area. In the mainly non-business economy (excluding public administration), they were Euros 27.2 and Euros 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 Euros 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%).

Source: Cyprus News Agency