Eurostat's recent publication on Wednesday showed insights into hourly labour costs across the European Union (EU) in 2023, indicating a notable rise compared to the previous year. The average hourly labour costs for the entire economy were estimated at EUR 31.8 in the EU and EUR 35.6 in the euro area, marking an increase from EUR 30.2 and EUR 34.0, respectively, in 2022.

Labour costs, comprising wages, salaries, and non-wage expenses like employers' social contributions, vary significantly among EU member states. The data revealed the lowest hourly labour costs in Bulgaria (EUR 9.3), Romania (EUR 11.0), and Hungary (EUR 12.8), contrasting with the highest costs observed in Luxembourg (EUR 53.9), Denmark (EUR 48.1), and Belgium (EUR 47.1).

Breaking down the figures by sector, hourly labour costs in industry stood at EUR 32.2 in the EU and EUR 38 in the euro area, while in construction, they amounted to EUR 28.5 and EUR 31.9, respectively. In the services sector, hourly labour costs ranged from EUR 31.8 in the EU to EUR 34.8 in the euro area. Meanwhile, in the predominantly non-business economy, excluding public administration, costs were EUR 32.4 and EUR 35.7, respectively.

Comparing 2023 to 2022, hourly labour costs at the whole economy level saw a 5.3% increase in the EU and a 4.8% rise in the euro area. Notably, for EU countries outside the euro area, hourly labour costs expressed in national currency rose across the board, with the most significant upticks recorded in Hungary (+17.0%), Romania (+16.5%), Bulgaria (+14.0%), and Poland (+12.4%), while Denmark experienced the smallest increase at +2.7%.