Seasonally non-adjusted data of the Central Statistical Bureau (CSB) show that, compared to the 2^nd quarter of 2018, in the 2^nd quarter of 2019 hourly labour costs rose by 8.9 % or 79 cents, reaching EUR 9.60. Seasonally adjusted data show increase of 7.0 %.

Rise in hourly labour costs recorded in all economic activities

Compared to the 2^nd quarter of 2018, in the 2^nd quarter of 2019 hourly labour costs increased in all economic activities. Sharpest upturn was recorded in human health and social work activities (of 18.0 %), information and communication (13.4 %), water supply; sewerage, waste management, and remediation activities (11.9 %), administrative and support service activities as well as manufacturing (10.9 % in each).

Hourly labour costs are influenced not only by changes in wages, salaries and other labour costs, but also by the fluctuations in the number of hours worked and employees over the year.

In the sectors indicating sharper hourly labour cost rise, greater influence was exerted by the increase in regular earnings and irregular premiums and bonuses, employers’ voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions, etc.), as well as decline in the number of hours worked. It should be noted that, compared to the corresponding period of 2018, in the 2^nd quarter of 2019 reduction in the number of hours worked was influenced by the smaller number of working days.

The smallest increase in hourly labour costs was recorded in mining and quarrying (of 1.7 %).

Highest labour costs still recorded in financial and insurance activities, while lowest in accommodation and food service activities

In the 2^nd quarter of 2019, the highest hourly labour costs were registered in financial and insurance activities (EUR 18.88), information and communication (EUR 15.56), energy sector (EUR 13.83), public administration and defence (EUR 11.75), as well as professional, scientific and technical activities (EUR 10.38). The lowest hourly labour costs were recorded in in accommodation and food service activities (EUR 6.71), other service activities (that include activities of public and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities) (EUR 7.06), arts, entertainment and recreation (EUR 7.79), education (EUR 8.25), real estate activities (EUR 8.25), as well as trade (EUR 8.31).

Hourly labour costs by main kind of economic activity
(seasonally non-adjusted data, EUR)

	Hourly labour costs			of which wages and salaries
	2018 Q2	2019 Q2	changes, %	2018 Q2	2019 Q2	Changes, %
Total (B–S)	8.81	9.60	8.9	7.00	7.60	8.6
Mining and quarrying (B)	9.74	9.90	1.7	7.77	7.89	1.6
Manufacturing (C)	8.23	9.12	10.9	6.53	7.18	10.0
Electricity, gas, steam and air conditioning supply (D)	12.97	13.83	6.6	9.45	10.51	11.2
Water supply; sewerage, waste management and remediation activities (E)	8.89	9.94	11.9	7.04	7.83	11.3
Construction (F)	8.33	8.92	7.1	6.68	7.12	6.6
Wholesale, retail sale; repair of motor vehicles and motorcycles (G)	7.78	8.31	6.8	6.21	6.61	6.3
Transportation and storage (H)	8.89	9.75	9.7	7.01	7.63	8.9
Accommodation and food service activities (I)	6.27	6.71	7.2	5.01	5.35	6.8
Information and communication (J)	13.72	15.56	13.4	10.91	12.33	12.9
Financial and insurance activities (K)	18.10	18.88	4.3	13.88	14.76	6.3
Real estate activities (L)	7.50	8.25	10.0	5.99	6.57	9.8
Professional, scientific and technical activities (M)	9.41	10.38	10.4	7.63	8.37	9.7
Administrative and support service activities (N)	7.72	8.56	10.9	6.19	6.84	10.5
Public administration and defence; compulsory social security (O)	10.80	11.75	8.8	8.55	9.24	8.1
Education (P)	7.74	8.25	6.5	6.19	6.57	6.0
Human health and social work activities (Q)	8.42	9.94	18.0	6.71	7.87	17.3
Arts, entertainment and recreation (R)	7.16	7.79	8.8	5.77	6.22	7.8
Other service activities (S)	6.82	7.06	3.5	5.55	5.74	3.6

Methodological explanations

Labour costs include gross wages and salaries and other labour costs. Hourly labour costs are calculated by dividing the sum of labour costs by the number of hours worked.

Wages and salaries are regular and irregular direct wages and salaries – basic salary (monthly, wage), payment for the time worked or job completed, regular and irregular premiums and bonuses, payments for days not worked (vacation and other days not worked), state mandatory social insurance contributions paid by the employees, and personal income tax. In line with the regulatory enactment of the European Union (EU), when compiling data on labour costs, wages and salaries include remuneration in kind (goods and services provided by the employer to employees free of charge or at a lower price, living quarters, mobile telephone, transport compensation etc.). Other labour costs include statutory social security contributions payable by the employer, employers’ contractual and voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions etc.), support payments from the employer, awards, gifts, payments for sick list A, severance pay, entrepreneurship state risk duty.

According to the EU regulatory enactments, hourly labour costs and changes thereof are calculated for sectors B–S of the NACE Rev. 2.

Indicator changes have been calculated from not rounded values.

Media requests:
Communication Section
E-mail: media@csb.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Lija Luste
Wage Statistics Section
E-mail: Lija.Luste@csb.gov.lv
Phone: +371 67366917

Labour costs

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