Labour Cost Index, Q4 2016, INE

Page created: Tuesday, 14 February 2017 16:22GMT

Press Release:  14 February 2017 - 8 Page(s)
Thematic:
Tags:
Labour Cost Index  Productivity  Wages

In the 4th quarter of 2016, the Labour Cost Index increased by 1.2% when compared to the same quarter in 2015. In terms of the annual average, it increased by 1.6% in 2016

The Labour Cost Index (LCI) working days adjusted increased by 1.2% in the 4 th quarter of 2016, compared with the same period in 2015. In the previous quarter, it was recorded a year-on-year increase of 2.8%.

The two main labour cost components are wage costs and other costs (per hour actually worked). Both wage costs and other costs increased by 1.2% from the same period a year earlier.

In terms of the annual average, the Labour Cost Index increased by 1.6% in 2016, due to the rise of 1.8% in wage costs and of 0.9% in other labour costs. In the previous year, the LCI had recorded also an increase of 1.6% (corresponding to rates of change of 1.3% and of 2.6% in the wage costs and other costs, respectively).

  1. 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 4 th quarter of 2016 1 , the LCI recorded an increase of 1.2% due to increases of 1.2% in wage costs and in other labour costs (Figure 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 also contributed the increases of 2.4% in the average cost per employee and of 0.8% in the number of hours actually worked per employee (Figure 2, next page).

In 2016, the LCI was up by 1.6% compared to the previous year due to increases of 1.8% in wage costs and of 0.9% in other costs. For that increase contributed also the increases of 1.8% in the average labour cost per employee and of 0.1% in the number of hours actually worked per employee.

In 2015, the LCI had recorded also an increase of 1.6%, corresponding to increases of 1.3% and of 2.6% in wage costs and in other costs, respectively.



Original title:  In the 4th quarter of 2016, the Labour Cost Index increased by 1.2% when compared to the same quarter in 2015. In terms of the annual average, it increased by 1.6% in 2016

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