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ECONOMY: Hourly labour costs in Cyprus increase 2.8% to EUR 16.3

11 April, 2019

Average hourly labour costs in Cyprus rose 2.8% last year to reach €16.3, almost half the EU level and slightly more than Greece.


In 2018, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €27.4 in the EU, €30.6 in the euro area, €16.3 in Cyprus (2.8% increase since 2017) and €16.1 in Greece (+3.7%).

According to Eurostat, the lowest hourly labour costs were recorded in Bulgaria (€5.4), Romania (€6.9), Lithuania (€9.0), Hungary (€9.2) and Latvia (€9.3). The highest were in Denmark (€43.5), Luxembourg (€40.6), Belgium (€39.7), Sweden (€36.6), the Netherlands (€35.9) and France (€35.8).

Hourly labour costs in industry were €27.4 in the EU and €33.2 in the euro area. In services, they were €27.0 and €29.6, respectively.

In construction, hourly labour costs were €25.0 in the EU and €27.6 in the euro area. In the mainly non-business economy (excluding public administration), they were €28.5 and €30.8, respectively. Labour costs consist of wages & salaries and non-wage costs (e.g. employers` social contributions).

The share of non-wage costs in total labour costs for the whole economy was 23.7% in the EU and 25.6% in the euro area. It ranged from 6.1% in Malta to 32.6% in France.

In Cyprus, labour costs were €14.4 in the business economy, €13.3 in industry, €14.3 in construction, €14.6 in services and €26.2 in the mainly non-business economy excluding the public administration. The non-wage part of the total reaches 17.3%.

In Greece, labour costs were €16.1 in the business economy, €16.5 in the industry, €10.7 in construction, €16.3 in the services and €16.1 in the mainly non-business economy. The non-wage costs of the total wage reach 21.9%.

In 2018, compared with previous year, hourly labour costs in the whole economy rose by 2.7% in the EU and by 2.2% in the euro area. Within the euro area, the largest increases were recorded in Latvia (+12.9%), Lithuania (+10.4%), Estonia and Slovakia (both +6.8%).

Hourly labour costs increased least in Malta (+0.4%), Finland (+1.2%), Spain (+1.3%) and Portugal (+1.4%).

For Member States outside the euro area in 2018, the largest increases in hourly labour costs in the whole economy, expressed in national currency, were observed in Romania (+13.3%) and Hungary (+9.8%). They increased least in Denmark (+1.9%), Sweden (+2.3%) and the United Kingdom (+3.3%).