In the 4th quarter of 2020 hourly labour costs rose by 6.8 %
Seasonally and calendar non-adjusted data of the Central Statistical Bureau (CSB) show that, compared to the 4th quarter of 2019, in the 4th quarter of 2020 hourly labour costs increased by 6.8 % or 67 cents, reaching EUR 10.43. Calendar-adjusted data comprised 7.1 %.
Rise in hourly labour costs recorded in almost all economic activities, with the largest increase in other service activities
According to seasonally unadjusted data, hourly labour costs increased in the 4th quarter of 2020 compared to the 4 th quarter of 2019 in all sectors except electricity, gas, steam and air conditioning supply, where they fell by 3.3 % over the year. The fastest growth was in other service activities (including activities of public, political and other organizations, repair of personal and household goods, dry-cleaning, hairdressing, beauty care, funeral and other services) - by 18.1 % and in health and social work - by 15.2 %.
Hourly labour costs were affected not only by changes in the level and structure of wages, salaries and other labour costs, but also by the fluctuations over the year in the number of hours worked and the number of employees.
Affected by the emergency situation declared due to COVID-19 pandemic, hourly labour costs in the 4th quarter were most affected by the drop of hours worked because of the downtime, dismissed employees and change in workloads. The reduction in hours worked is observed in all sectors except mining, information and communication services, public administration, education and health, as well as social work.
In the electricity, gas, steam and air conditioning supply sector labour costs declined faster than hours worked, while in the health sector there was a sharp rise in wages and salaries. The smallest increase in hourly labour costs was recorded in public administration (0.7 %), financial and insurance activities (2.3 %) and real estate (4.0 %).
For several consecutive years the highest labour costs recorded in financial and insurance activities, while lowest in accommodation and food service activities
In the 4th quarter of 2020, the highest hourly labour costs were recorded in the financial and insurance activities sector (EUR 18.35) and in information and communication services (EUR 16.87).
In turn, the lowest hourly labour costs were recorded in the accommodation and catering sector (EUR 7.30), education (EUR 8.38) and real estate (EUR 8.41). .
Changes in hourly labour costs by main kind of economic activity
(seasonally and calendar non-adjusted data; EUR)
| Hourly labour costs | of which wages and salaries | ||||
2019 4th quarter | 2020 4th quarter | changes, % | 2019 4th quarter | 2020 4th quarter | changes, % | |
Total (B-S) | 9.76 | 10.43 | 6.8 | 7.70 | 8.26 | 7.2 |
Mining and quarrying (B) | 11.55 | 12.26 | 6.2 | 9.15 | 9.71 | 6.1 |
Manufacturing (C) | 9.47 | 10.08 | 6.4 | 7.47 | 7.98 | 6.8 |
Electricity, gas, steam and air conditioning supply (D) | 12.31 | 11.91 | -3.3 | 9.13 | 9.00 | - 1.4 |
Water supply; sewage, waste management and remediation activities (E) | 9.60 | 10.09 | 5.1 | 7.45 | 7.84 | 5.3 |
Construction (F) | 9.90 | 10.61 | 7.2 | 7.87 | 8.45 | 7.4 |
Wholesale, retail sale; repair of motor vehicles and motorcycles (G) | 8.45 | 8.90 | 5.4 | 6.68 | 7.05 | 5.5 |
Transportation and storage (H) | 9.47 | 9.92 | 4.7 | 7.42 | 7.75 | 4.5 |
Accommodation and service activities (I) | 6.96 | 7.30 | 4.9 | 5.53 | 5.80 | 4.9 |
Information and communication (J) | 15.93 | 16.87 | 5.9 | 12.54 | 13.34 | 6.4 |
Financial and insurance activities (K) | 17.94 | 18.35 | 2.3 | 13.96 | 14.34 | 2.7 |
Real estate activities (L) | 8.09 | 8.41 | 4.0 | 6.41 | 6.68 | 4.3 |
Professional, scientific and technical activities (M) | 10.70 | 11.44 | 6.9 | 8.61 | 9.22 | 7.2 |
Administrative and support service activities (N) | 8.80 | 9.34 | 6.2 | 7.01 | 7.43 | 6.0 |
Public administration and defence; compulsory social security (O) | 12.38 | 12.46 | 0.7 | 9.70 | 9.90 | 2.1 |
Education (P) | 7.91 | 8.38 | 6.0 | 6.27 | 6.65 | 6.2 |
Human health and social work activities (Q) | 10.24 | 11.80 | 15.2 | 8.07 | 9.36 | 16.0 |
Arts, entertainment and recreation (R) | 8.01 | 8.68 | 8.3 | 6.40 | 6.97 | 8.8 |
Other service activities (S) | 7.31 | 8.64 | 18.1 | 5.95 | 7.02 | 18.0 |
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 accordance 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:
Natālija Oščenkova
Wage Statistics Section
E-mail: Natalija.Oscenkova@csb.gov.lv
Phone.: +371 67366971
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