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Labour Costs Eurostat

Labour Costs in Europe See Steep Increase in Q1 2024

Non-Wage Costs Contribute Significantly to Overall Rise

Newly released statistics from Eurostat provide a comprehensive analysis of labour costs in the Eurozone and the European Union, revealing a significant increase in the first quarter of 2024.

Key Findings

The labour cost index, which tracks the short-term evolution of hourly costs for employers, surged by 5.1% in the Eurozone and 5.5% in the EU compared to the same period in 2023.

Wage and salary costs increased by an average of 3.7% in the Eurozone and 4.1% in the EU, driven by higher base pay and benefits. However, non-wage costs, such as employers' social contributions, played a more significant role in the overall rise, accounting for 53% of the increase in the Eurozone and 54% in the EU.

These findings underscore the complexity of labour cost dynamics in Europe, particularly the growing importance of non-wage costs in shaping overall expenses for employers.


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