The Labour Cost Index increased by 2.6% when compared to the same quarter of 2016
The Labour Cost Index (LCI) working days adjusted increased by 2.6% in the 1 st quarter of 2017, compared with the same period in 2016. In the previous quarter, it was recorded a year-on-year increase of 0.6%.
The two main labour cost components are wage costs and other costs (per hour actually worked). The wage costs increased by 3.0% and other costs raised by 1.4%.
From other perspective, the LCI year-on-year rate of change was also a result of an increase of 0.2% in the average cost per employee and a decrease of 2.2% in the number of hours actually worked per employee. The decrease of the latter was common to all economic activities, while the increase of the former took place in all activities, with the exception of the Public Administration, where a decrease was recorded.
- Labour Cost Index and components
The labour costs incurred by the employer include wage costs and other labour costs of their responsibility (see the Technical note on page 7). Therefore, their evolution depends on the development of each of these components.
The labour Cost Index (LCI) is a short term indicator, which, in addition to the labour costs incurred by the employer, considers the number of hours actually worked per employee, measuring the evolution of the average labour costs per hour actually worked.
In the 1 st quarter of 2017 1 , the LCI recorded an increase of 2.6% due to increases of 3.0% in wage costs and 1.4% in other labour costs (Figure 1). 1 The data analysed in this Press Release are working days adjusted. The raw data are available in the annex tables and at the Official Statistics Portal. Unless otherwise stated, the rates of change mentioned in this Press Release are year-on-year rates of change (from the same quarter of the previous year).
For that evolution contributed the increase of 0.2% in the average cost per employee and a decrease of 2.2% in the number of hours actually worked per employee (Figure 2).