Labour increased annually by 1.9% in euro area and 2.3% in EU

March 22, 2022

According to the statistical office of the European Union (Eurostat), euro area hourly labour cost increased by 1.9% during the fourth quarter of 2021, while EU hourly labour cost increased by 2.3% when compared to the same quarter of the previous year.

The two main components used to determine labour costs are wages & salaries and non-wages costs. The Eurostat noted, in the euro area, the cost of wages & salaries per hour worked increased by 1.5% and the non-wage component by 3.4% in the fourth quarter of 2021, compared to the corresponding quarter last year. Also in the EU, the costs of hourly wages & salaries went up by 2.0% and the non-wage component rose by 3.6% in the fourth quarter of 2021, compared to 2020 fourth quarter.

Breakdown by economic activity

Hourly labour costs in the euro area increased by 1.4$ in the (main) non-business economy and by 2.1% in the business economy: 1.5% in industry, 2.1% in construction and 2.4% in services when compared to the same quarter in the previous year. While, in the EU, hourly labour cost increased by 1.6% in the (mainly) non-business economy and by 2.6% in the business economy: 2.1% in industry, 2.5% in construction and 2.9% in services.

In comparison to the fourth quarter of 2021 the economic activities that recorded the highest increases in hourly wage costs were: NACE Rev. 2 section J – ‘Information and communication’ (+3.9%), B – ‘Mining and quarrying (+3.1%), H – ‘Transportation and storage (+2.9%) and N – ‘Administrative and support service activities (+2.8%).

By contrast, two economic activities recorded a decrease in hourly wage costs, namely: NACE Rev. 2 section I – ‘Accommodation and food service activities (-2.1%) and R – ‘Arts, entertainment and recreation (-3.6%). Those economic activities also recorded the biggest increases in the non-wage component (+31.8% for section I and +18.3% for section R).


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.