Euro Area Labour Costs

Last Release

Sep 30, 2024

Actual

112.1

Units In

Points

112.4

Frequency

Quarterly

Next Release

Jun 16, 2025

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 rose by 3.4% year-on-year in Q1 2025, marking the smallest increase since Q3 2022. This compares with a 3.8% rise in the previous quarter. The wage component increased by 3.4%, also the slowest pace since Q3 2022, down from 4.1% previously. Meanwhile, the non-wage component accelerated, rising by 3.4% compared to 2.7% in the prior period. Across sectors, labor costs rose the least in industry, up 2.5% versus 4.2% previously. In the services sector, costs increased by 4.3%, up from 3.8%, while the construction sector saw a 4.7% rise, compared to 4.2% in the previous quarter.