(CN) — On average, employers in the European Union are paying 10 euros, or $10.82 currently, more per worker per hour than they did 15 years ago, according to data published by Eurostat on Wednesday.
In 2023, hourly labor costs averaged $34.42, an increase of $1.73 compared to 2022 and a $11.04 increase compared to 2008.
“The collection of labor costs is an essential part of the range of statistics that are relevant for an understanding of the inflationary or deflationary process and the cost dynamics in the economy," statisticians explain in the report.
Hikes in labor costs can drive inflation as businesses pass increases onto consumers, while decreases in labor costs may foreshadow a larger trend of deflation.
While labor costs increased an average 5% across the EU between 2022 and 2023, the range was broad: Hungary recorded the greatest increase, at 17%, and Denmark reported the smallest, with labor costs up just 3%.
Sweden reported the EU’s only decrease in labor costs last year: a 3% dip to $34.85.
Looking back 15 years, hourly labor costs have increased nearly 60% in Luxembourg, from $34.96 in 2008. Malta’s hourly labor costs have risen less than 1% since the late 2000s.
A measurement of an employer’s costs to employ a worker, hourly labor costs combine wages with expenses and social contributions such as social security or pension payments. Non-wages make up about a quarter of hourly labor costs, though that share fell to as little as 1.4% in Malta last year and rose as high as 32% in Sweden and France.
Researchers emphasized the wide range of labor costs — and wages — between EU member states.
Bulgaria stands at the low end, with labor costs falling at $10.07, followed by Romania at $11.91 and Hungary with $13.85.
Paying out $57.90 per hour, Luxembourg reported the highest labor costs in the EU, followed by Denmark and Belgium, which both hit above $50.87.
Average labor costs varied little between industries EU-wide. Construction costs averaged $30.85 and public administration costs reached $34.96.
Construction labor costs however fell lowest in Bulgaria ($8.23 per hour), and were highest in Denmark ($49.14 per hour).
Luxembourg reported the highest overall labor cost in the EU for services which added up to an average $63.64 per hour. The services industry, which makes up 47% of the EU economy, includes retail trade, auto mechanics, scientists, transportation workers, food and accommodations, real estate agents and bankers.
According to data published by the U.S. Bureau of Labor on March 13, the average U.S. employer spent $43.11 per hour on each worker in December. This puts the U.S. average hourly costs on par with Spain, Italy and Slovenia.
Follow @bright_lamp
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
-
Taxing timeshares April 24, 2024
