Analytics, Labour-market, Lithuania, Statistics

Over a year, an increase in labour costs per hour worked, calendar adjusted, was observed for all economic activities, the largest ­– human health and social work activities (16.2%), construction and accommodation service activities (13.3%).

In III quarter 2018, against the same quarter of 2017, the increase in the labour costs per hour worked, calendar adjusted, was determined by increased (since 1 January 2018) minimum monthly wage and increased basic wages for politicians, judges, civil servants, public service employees and employees of budgetary institutions, revised minimal coefficients of the fixed component of wage of qualified employees of budgetary institutions (according to the provisions of the Labour Code), increased (since 1 May 2018) salary for the employees of health care establishments (doctors, nurses) and other reasons.

Fig. 2. Change in labour costs per hour worked by economic activity, III quarter 2018
Against the respective quarter of the previous year, calendar day adjusted %

Economic activities according to the Statistical Classification of Economic Activities:

B–S –Industry, construction and services
B–N – Business
B – Mining and quarrying
C – Manufacturing
D – Electricity, gas, steam and air conditioning supply
E – Water supply; sewerage, waste management and remediation activities
F – Construction
G – Wholesale and retail trade; repair of motor vehicles and motorcycle
H – Transportation and storage
I – Accommodation and food service activities
J – Information and communication
K – Financial and insurance activities
L – Real estate activities
M – Professional, scientific and technical activities
N – Administrative and support service activities
O – Public administration and defence; compulsory social security
P – Education
Q – Human health and social work activities
R – Arts, entertainment and recreation
S – Other service activities

Concepts

Gross earnings and remuneration in kind refers to remuneration in cash covering the basic wage and bonuses, payable by the employer to the employee directly, including state social insurance contributions and individual income tax payable by the employee, as well as remuneration in kind (e.g. all goods and services made available to employees through the enterprise, staff housing, presents and other employers’ expenditure in kind).

Labour costs are the total expenditure borne by an employer in order to employ workers. They include: gross remuneration in cash and in kind, employers’ social contributions, vocational training costs, other expenditure incurred in order to employ workers. Vocational training costs, other expenditure incurred in order to employ workers and subsidies received by the employer are excluded from the calculation of the labour cost index.

Labour cost index is a relative indicator reflecting the change in labour costs per hour worked over a certain period of time.

Other labour costs refers to employers’ social contributions (allowances for sick leave paid by the employer from his own funds; guaranteed remuneration in the event of short-time working, payments to employees leaving the enterprise; family social benefits and others similar costs), except for subsidies received by the employer.