Hourly labour costs rose significantly in the first quarter (Q1) of 2024, with the euro area experiencing a 5.1 per cent increase and the European Union (EU) seeing a 5.5 per cent rise compared to the same quarter of the previous year, according to Eurostat, the statistical office of the EU.

The two main components of labour costs, wages & salaries and non-wage costs, both contributed to this increase. In the euro area, hourly wages & salaries increased by 5.3 per cent, while the non-wage component rose by 4.5 per cent. Similarly, in the EU, hourly wages & salaries grew by 5.8 per cent, with the non-wage component increasing by 4.8 per cent.

Breaking down the figures further, hourly labour costs in the euro area saw a 5.3 per cent rise in the mainly non-business economy and a 5 per cent increase in the business economy. The industry sector saw a 4.8 per cent increase in hourly labour costs, as per Eurostat.

In the EU, the non-business economy experienced a 5.6 per cent rise in hourly labour costs, while the business economy saw a 5.5 per cent increase. In the industry sector, hourly labour costs rose by 5.5 per cent.

Notably, the highest increases in hourly wage costs for the whole economy were recorded in several EU Member States. Romania led with a 16.4 per cent increase, followed by Bulgaria at 15.8 per cent, Croatia at 15.3 per cent, Poland at 14.1 per cent, and Hungary at 13.7 per cent. Latvia and Lithuania also reported significant increases, with 12.7 per cent and 11.1 per cent respectively.

Fibre2Fashion News Desk (DP)