EMPLOYMENT : LABOUR COSTS UP BY NEARLY 3% IN THE EU IN 4TH QUARTER OF 2005.

• Position: Brief article

Total hourly labour costs in the European Union rose at an average annual rate of 2.9% in nominal terms in the fourth quarter of 2005, up from 2.2% in the third quarter, according to figures released on 17 March by Eurostat. (1)

Wages and salaries and non-wage costs grew at annual rates of 3.2% and 2.1% respectively. Corresponding rates for the previous quarter were 2.1% and 2.5%. A breakdown by economic activity shows that hourly labour costs rose by 2.6% in industry, by 3.0% in services and by 3.3% in construction in the fourth quarter of 2005.

The smallest annual increases were recorded in Germany and Portugal, while the highest annual rises were found in Latvia and Estonia.

(1) the German government is considering a similar proposal The Labour Cost Index is a short-term indicator showing the development of hourly labour costs incurred by employers as a result of engaging the labour work force (Federatie Nederlandse Vakbeweging / Staat der...