Brussels – In 2023, average hourly labor costs in the entire European economy were estimated at €31.8 in the EU and €35.6 in the euro area, up from €30.2 and €34.0, respectively, in 2022, according to data released by Eurostat.
Lowest hourly labor cost in Bulgaria, highest in Luxembourg
Average hourly labor costs mask significant gaps between EU countries: the lowest were in Bulgaria (9.3 euros), Romania (11.0 euros), and Hungary (12.8 euros); the highest were in Luxembourg (53.9 euros), Denmark (48.1 euros), and Belgium (47.1 euros); in Italy, they are at 29.8 euros per hour, at the low end.
Hourly labor costs in industry were 32.2 euros in the EU and 38.0 euros in the euro area. In construction, hourly labor costs were 28.5 and 31.9 euros, respectively. In services, hourly labor costs varied between 31.8 euros in the EU and 34.8 euros in the euro area. In the non-business economy (excluding public administration), hourly labor costs were 32.4 and 35.7 euros, respectively.
The two main components of labor costs are wages and salaries and non-wage costs (e.g., employers’ social contributions). The share of non-wage costs in total labor costs for the whole economy was 24.7 percent (pct) in the EU and 25.5 pct in the euro area. The lowest shares of non-wage costs were in Malta (1.4 pct), Romania (5.0 pct) and Lithuania (5.4 pct) and the highest in Sweden (32.2 pct) and France (31.9 pct).
Hourly labor costs increased by 5.3 percent in the EU between 2022 and 2023
In 2023, compared to 2022, hourly labor costs at the whole economy level expressed in euros increased by 5.3 percent in the EU and 4.8 pct in the euro area.
Within the euro area, hourly labor costs increased in all countries. The largest increases were recorded in Croatia (+14.2 pct), Lithuania (+12.4 pct) and Estonia (+11.7 pct).
In all EU countries outside the euro area, hourly labor costs expressed in national currency increased in 2023, with the largest increases recorded in Hungary (+17.0 pct), Romania (+16.5 pct), Bulgaria (+14.0 pct) and Poland (+12.4 pct). The smallest increase was recorded in Denmark (+2.7 pct).
English version by the Translation Service of Withub
