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Thursday, 28.03.2024, 18:49
In Q2, hourly labour costs in Latvia grew by 10.6%
Seasonally non-adjusted data
show that, compared to the 2nd quarter of 2016, in the 2nd quarter
of 2017 rise in hourly labour costs was recorded in almost all sectors, except
for 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) in which a drop of 0.3% was recorded. Sharper rise in the
hourly labour costs was recorded in education (of 16.8%), energy sector (14.2%),
professional, scientific and technical activities (legal and accounting
activities, advertising and market research, architectural and engineering
activities, management consultancy activities, scientific research and
development, etc.) (13.0%), public administration and defence (12.9%), and
trade (11.5%).
Rise in regular wages and
salaries and support payments from the employer had more notable influence on
the increase of labour costs in education sector. In the energy sector, steeper
rise was recorded in irregular wages and salaries, whereas in professional,
scientific and technical activities as well as public administration and
defence – in employers’ voluntary social security contributions (additional
pension insurance contributions, health and life insurance contributions etc.).
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 during the year. In the
2nd quarter of the year, compared to the corresponding period
of the previous year, the number of hours worked reduced almost in all economic
activities, except for information and communication, construction,
administrative and support service activities, as well as real estate
activities.
The smallest rise in hourly
wages and salaries was recorded in real estate activities – of 2.0%. Increase
in wages, salaries and other labour costs in this sector was small, whereas the
number of hours worked in it grew slightly.
In the 2nd quarter
of 2017, the highest hourly labour costs were observed in financial and
insurance activities (17.78 euros), information and communication
(12.53 euros), energy sector (11.90 euros), public administration and
defence (10.12 euros), and mining and quarrying (8.46 euros). The
lowest hourly labour costs, in turn, were recorded in accommodation and food
service activities (5.46 euros), other service activities
(5.76 euros), real estate activities (6.55 euros), arts,
entertainment and recreation (6.78 euros), as well as administrative and
support service activities (6.88 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 |
||||
Q2 2016 |
Q2 2017 |
Changes,% |
Q2 2016 |
Q2 2017 |
Changes,% |
|
Total (B–S) |
7.30 |
8.07 |
10.6 |
5.87 |
6.48 |
10.4 |
Mining and
quarrying (B) |
7.91 |
8.46 |
7.0 |
6.36 |
6.78 |
6.6 |
Manufacturing
(C) |
6.85 |
7.49 |
9.3 |
5.46 |
5.98 |
9.5 |
Electricity, gas, steam and air conditioning supply (D) |
10.41 |
11.90 |
14.2 |
7.90 |
9.16 |
16.0 |
Water supply; sewerage, waste management and remediation activities (E) |
7.51 |
8.30 |
10.4 |
5.99 |
6.62 |
10.4 |
Construction
(F) |
6.88 |
7.37 |
7.2 |
5.60 |
5.99 |
7.0 |
Wholesale and retail trade; repair of motor vehicles and motorcycles (G) |
6.50 |
7.25 |
11.5 |
5.22 |
5.82 |
11.5 |
Transportation
and storage (H) |
7.53 |
8.23 |
9.3 |
5.98 |
6.54 |
9.5 |
Accommodation and food service activities (I) |
4.98 |
5.46 |
9.8 |
4.01 |
4.39 |
9.5 |
Information
and communication (J) |
11.57 |
12.53 |
8.2 |
9.31 |
10.07 |
8.2 |
Financial and insurance activities (K) |
16.39 |
17.78 |
8.5 |
12.97 |
14.10 |
8.8 |
Real
estate activities (L) |
6.42 |
6.55 |
2.0 |
5.20 |
5.31 |
2.1 |
Professional, scientific and technical activities (M) |
7.78 |
8.79 |
13.0 |
6.47 |
7.29 |
12.8 |
Administrative and support service activities (N) |
6.49 |
6.88 |
6.1 |
5.30 |
5.60 |
5.6 |
Public administration and defence, compulsory social security (O) |
8.96 |
10.12 |
12.9 |
7.25 |
8.04 |
10.9 |
Education
(P) |
6.22 |
7.27 |
16.8 |
5.02 |
5.86 |
16.7 |
Human health and social work activities (Q) |
6.53 |
7.18 |
9.9 |
5.26 |
5.78 |
9.7 |
Arts, entertainment and recreation (R) |
6.12 |
6.78 |
10.9 |
4.96 |
5.49 |
10.7 |
Other
service activities (S) |
5.78 |
5.76 |
-0.3 |
4.80 |
4.78 |
-0.4 |
More information on Latvian
labour costs is available in the CSB database section Labour Costs – Key
Indicators. Statistics on labour costs
in the 2nd quarter of 2017 is published in the database section
Labour Costs (Short term statistical
data).
Methodological explanations
Labour costs include gross
wages and salaries and other labour costs. Hourly labour costs are calculated
by dividing the sum of labour costs by the number of hours worked.
Wages and salaries are regular
and irregular direct wages and salaries – basic salary (monthly, wage), payment
for the time worked or job completed, regular and irregular premiums and
bonuses, payments for days not worked (vacation and other days not worked),
state mandatory social insurance contributions paid by the employees, and
personal income tax. In line with the regulatory enactment of the European
Union (EU), when compiling data on labour costs, wages and salaries include
remuneration in kind (goods and services provided by the employer to employees
free of charge or at a lower price, living quarters, mobile telephone,
transport compensation etc.). Other labour costs include statutory social
security contributions payable by the employer, employers’ contractual and
voluntary social security contributions (additional pension insurance
contributions, health and life insurance contributions etc.), support payments
from the employer, awards, gifts, payments for sick list A, severance pay,
entrepreneurship state risk duty.
According to the EU regulatory
enactments, hourly labour costs and changes thereof have been calculated for
sectors B–S of the NACE Rev. 2.
Indicator changes have been
calculated from not rounded values.