Euro Area Labour Costs

Last Release

Sep 30, 2024

Actual

112.1

Units In

Points

112.4

Frequency

Quarterly

Next Release

N/A

Time to Release

N/A

Highest	Lowest	Average	Date Range	Source
119.2 Jun 2022	83.4 Mar 2009	100.6 Points	2009-2024	Eurostat

The Labour Cost Index in the Euro Area is a short-term indicator showing the development of hourly labour costs incurred by employers, in nominal terms, that is without adjusting for price developments. It is calculated dividing the labour cost in national currency by the number of hours worked. The quarterly changes in hourly employers’ costs are measured for total labour costs and its main components: wages and salaries; and non-wage costs (labour costs other than wages and salaries). Total labour costs (TOT) cover wage and non-wage costs less subsidies. They do not include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc.

Latest Updates

Hourly labor costs in the Euro Area increased by 3.6% year-on-year in the second quarter of 2025, a touch below the preliminary estimate of 3.7% but up from 3.4% in the previous quarter. Growth was driven by a 3.7% rise in wages and salaries, compared with 3.5% in the first quarter, while non-wage costs such as social contributions and benefits climbed 3.4%, up from 3.2% previously. Across sectors, the business economy recorded a 4.0% rise in hourly labor costs, led by construction (+4.7%), services (+4.3%), and industry (+3.3%). In contrast, the non-business economy saw a more moderate increase of 2.7%. Among the Eurozone’s largest economies, labor cost growth strengthened in Germany (3.5% vs. 2.5% in Q1) and the Netherlands (6.0% vs. 5.9%). In contrast, it remained stable in Spain (3.7%) but slowed in Italy (3.8% vs. 4.4%) and France (1.4% vs. 2.0%).