Analytics, Labour-market, Latvia, Statistics, Wages

International Internet Magazine. Baltic States news & analytics Sunday, 26.03.2017, 10:17

Hourly labour costs in Latvia grew by 7.3 % in the 4Q of 2016

Ilze Rutka Wage Statistics Section, 16.03.2017.Print version
Seasonally non-adjusted data of the Central Statistical Bureau (CSB) show that,compared to the 4th quarter of the previous year, in the 4th quarter of 2016 hourly labour costs rose by 51 cents or 7.3%, reaching 7.46 euros.Seasonally adjusted data, in turn, show that labour costs increased by 7.8%.

Changes in hourly labour costs, compared to the corresponding quarter of the previous year, %

According to seasonally non-adjusted data, the sharpest rise in the hourly labour costs was recorded in other service activities (activities of public, political and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities) (of 18.7%), energy sector (17.6%), education (9.7%), administrative and support service activities (9.6%), as well as mining and quarrying (9.2%).


Labour cost increase in these sectors, except for mining and quarrying, was affected mainly by the growth in both wages and salaries and irregular premiums and bonuses. Over the year, energy sector witnessed also increase in the voluntary social contributions (private pension plan, health and life insurance, etc. payments), while administrative and support service activities indicated increase in the benefits paid by employer.


The hourly labour costs are influenced not only by changes in wages, salaries and other labour costs, but also by the fluctuations in the number of hours worked. Nonetheless the number of hours worked reduced in both other service activities and mining and quarrying, the decline in hours worked in mining and quarrying had greater influence on the hourly labour cost changes.


The smallest rise in the hourly wages and salaries was recorded in transportation and storage (of 1.3%) as well as arts, entertainment and recreation (of 2.5%). Increase in the wages, salaries and other labour costs in these sectors was small, whereas the number of hours worked grew sharply.


In the 4th quarter of 2016, the highest hourly labour costs were observed in financial and insurance activities (15.35 euros), information and communication (11.90 euros), energy sector (10.74 euros), public administration and defence (9.58 euros), and mining and quarrying (9.44 euros). The lowest hourly labour costs were recorded in accommodation and food service activities (4.98 euros), arts, entertainment and recreation (6.05 euros), other service activities and education (6.18 euros), as well as real estate activities (6.43 euros).


Changes in hourly labour costs by main kind of economic activity (seasonally non-adjusted data; euros)


 

Hourly labour costs

of which wages and salaries

Q4 2015

Q4 2016

changes, %

Q4 2015

Q4 2016

changes, %

Total (BS)

6.96

7.46

7.3

5.60

5.95

6.2

Mining and quarrying (B)

8.64

9.44

9.2

6.89

7.56

9.8

Manufacturing (C)

6.67

7.15

7.2

5.34

5.69

6.5

Electricity, gas, steam and air conditioning supply (D)

9.13

10.74

17.6

6.93

7.60

9.8

Water supply; sewerage, waste management and remediation activities (E)

6.84

7.17

4.8

5.44

5.69

4.7

Construction (F)

6.89

7.19

4.5

5.61

5.83

3.9

Wholesale and retail trade;

repair of motor vehicles and motorcycles (G)

6.09

6.61

8.4

4.92

5.28

7.4

Transportation and storage (H)

7.58

7.68

1.3

6.05

6.08

0.5

Accommodation and food service activities (I)

4.63

4.98

7.7

3.74

4.01

7.2

Information and communication (J)

11.17

11.90

6.5

9.08

9.45

4.1

Financial and insurance activities (K)

14.37

15.35

6.8

11.70

11.78

0.7

Real estate activities (L)

6.15

6.43

4.6

5.01

5.17

3.2

Professional, scientific and technical activities (M)

7.53

7.90

4.9

6.34

6.55

3.3

Administrative and support service activities (N)

6.05

6.63

9.6

4.92

5.37

9.1

Public administration and defence, compulsory social security (O)

8.91

9.58

7.5

7.00

7.64

9.2

Education (P)

5.63

6.18

9.7

4.52

4.97

9.9

Health and social work (Q)

6.27

6.65

6.1

5.04

5.31

5.3

Arts, entertainment and recreation (R)

5.91

6.05

2.5

4.79

4.87

1.7

Other service activities (S)

5.21

6.18

18.7

4.33

4.97

14.8







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