An hour glass and euros stacked on top of each other

In 2023, the average hourly labour costs in the whole economy (see methodological note) were estimated to be €31.8 in the EU and €35.6 in the euro area, up compared with €30.2 and €34.0, respectively, in 2022.  

These estimates come from data on labour costs levels published by Eurostat today. This article presents only a handful of findings from the more detailed Statistics Explained article.

Lowest hourly labour costs in Bulgaria, highest in Luxembourg 

The average hourly labour costs mask significant gaps between EU countries, with the lowest hourly labour costs recorded in Bulgaria (€9.3), Romania (€11.0) and Hungary (€12.8) while the highest in Luxembourg (€53.9), Denmark (€48.1) and Belgium (€47.1). 

Hourly labour costs in industry were €32.2 in the EU and €38.0 in the euro area. In construction, they were €28.5 and €31.9, respectively. In services, hourly labour costs varied between €31.8 in the EU and €34.8 in the euro area. In the mainly non-business economy (excluding public administration), they were €32.4 and €35.7, respectively.

The two main components of labour costs are wages and 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 24.7% in the EU and 25.5% in the euro area. The lowest shares of non-wage costs were recorded in Malta (1.4%), Romania (5.0%) and Lithuania (5.4%) and the highest in Sweden (32.2%) and France (31.9%).


Source dataset: lc_lci_lev

Hourly labour costs increased by 5.3% in the EU between 2022 and 2023

In 2023 compared with 2022, hourly labour costs at whole economy level expressed in € rose by 5.3% in the EU and by 4.8% in the euro area.

Within the euro area, hourly labour costs increased in all countries. The largest increases were recorded in Croatia (+14.2%), Lithuania (+12.4%) and Estonia (+11.7%).

For EU countries outside the euro area, the hourly labour costs expressed in national currency increased in 2023 in all countries, with the largest increases recorded in Hungary (+17.0%), Romania (+16.5%), Bulgaria (+14.0%) and Poland (+12.4%). They increased the least in Denmark (+2.7%).

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Methodological notes: 

  • Total labour costs refer to the total expenditure borne by employers in order to employ staff. They cover wage and non-wage costs minus subsidies. They do include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc. Wage and salary costs include direct remunerations before deduction of employees’ social contributions, bonuses, and allowances paid by an employer in cash or in kind to an employee in return for work done, payments to employees’ saving schemes, payments for days not worked and remunerations in kind such as food, drink, fuel, company cars, etc. Non-wage costs include the employers’ social contributions plus employment taxes regarded as labour costs minus subsidies, intended to refund part or all of the employer’s cost of direct remuneration.
  • Labour costs data presented in this news item cover enterprises with 10 or more employees (including apprentices). Estimates are obtained by extrapolating the 2020 Labour Cost Survey (LCS) hourly labour cost data expressed in national currencies using the quarterly Labour Cost Index (LCI) transmitted by the Member States. In order to calculate monetary estimates in € and derive European aggregates, average annual exchange rates have been used. The LCI not adjusted for calendar effects is used, except for Denmark, Sweden, Iceland and Norway, where only calendar-adjusted data are available. 
  • Austria, Spain, Finland and Iceland: data are taken from national sources.
  • In this publication, the whole economy includes all economic activities except NACE Rev. 2 sections: ‘A - Agriculture, forestry and fishing’, ‘O - Public administration and defence; compulsory social security’, ‘T - Activities of households as employers; undifferentiated goods - and services - producing activities of households for own use’ and ‘U - Activities of extraterritorial organisations and bodies’.


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