In 2013, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €23.7 in the EU28 and €28.4 in the euro area3 (EA17). However, this average masks significant differences between EU Member States, with the lowest hourly labour costs recorded in Bulgaria (€3.7), Romania (€4.6), Lithuania (€6.2) and Latvia (€6.3), and the highest in Sweden (€40.1), Denmark (€38.4), Belgium (€38.0), Luxembourg (€35.7) and France (€34.3).

Within the business economy, labour costs per hour were highest in industry (€24.6 in the EU28 and €31.0 in the euro area), followed by services (€23.9 and €28.0 respectively) and construction (€21.0 and €24.5). In the mainly non-business economy (excluding public administration), labour costs per hour were €23.2 in the EU28 and €27.7
in the euro area.

Labour costs are made up of wages & salaries and non-wage costs such as employers' social contributions. The share of non-wage costs in the whole economy was 23.7% in the EU28 and 25.9% in the euro area, varying between 8.0% in Malta and 33.3% in Sweden.

Growth in labour costs

Between 2008 and 2013, hourly labour costs in the whole economy expressed in euro have risen by 10.2% in the EU28 and by 10.4% in the euro area. Within the euro area, the largest increases were recorded in Austria (+18.9%), Slovakia (+17.0%) and Finland (+15.9%). Decreases were observed in Greece (-18.6%) and Portugal (-5.1%).

For Member States outside the euro area, and expressed in national currency, the largest increases in hourly labour costs in the whole economy between 2008 and 2013 were registered in Bulgaria (+44.1%) and Romania (+32.8%), and the smallest in Croatia (+0.7%), Lithuania (+5.0%), the United Kingdom (+6.3%) and Latvia (+6.9%). When comparing labour cost estimates over time, it should be noted that data for those Member States outside the euro area are influenced by exchange rate movements if analysed in euro.