Eurostat, the statistical office of the European Union

F3: Labour market

2920 Luxembourg LUXEMBOURG

Labour cost statistics constitute a hierarchical system of multi-annual, yearly and quarterly statistics, designed to provide a comprehensive and detailed picture of the level, structure and short-term development of labour costs in the different sectors of economic activity in the European Union and certain other countries. All statistics are based on a harmonised definition of labour costs.

Annual labour cost data published here cover the core labour cost variables "average hourly labour costs" and "average monthly labour costs" as well as the breakdown of labour costs by main categories (wages and salaries; other labour costs). Average hourly and monthly labour costs as well as the structure of total annual labour costs per employee by economic activity are provided for enterprises with 1+ and for enterprises with 10+ employees.Data  are available for the EU Member States and partly for Iceland and Switzerland.

The data are either collected by the National Statistical Institutes or, more frequently, estimated by them on the basis of their four-yearly Labour Cost Surveys (LCS), the Labour Cost Index (LCI) and additional up-to-date - though sometimes partial - information. Coverage of statistical units, thresholds and other methodological aspects are identical to that of the four yearly LCS.

The data disseminated in this table have been compiled using the economic activity classification General Industrial Classification of Economic Activities (NACE) Rev. 2 from reference year 2008 onwards. Where available, the time series includes back casts in NACE Rev. 2.

Data are broken down by economic activity (NACE Rev.2 aggregates and sections B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, B-E, B-F, B-N, B-S excl. O, B-S, G-J, G-N, G-S excl. O, K-N, P-S and O-S)For periods up to reference year 2008, data were compiled using the previous classification NACE Rev. 1.1 and are disseminated in separate tables.

Series up to 2008 are broken down by NACE Rev. 1.1 at section level for sections C to O and the C-E, C-F, C-K, C-O, C-O (excl. L), G-I, G-K, J-K, M-O aggregates.

The main differences between NACE Rev. 1.1 and NACE Rev. 2 are to be found in the more detailed breakdown of the services sectors, on the one hand, and the less detailed breakdown of the manufacturing sector, on the other hand. For more information on NACE:

http://ec.europa.eu/eurostat/web/nace_rev2/introduction 

For further details on the geographical classification see: http://ec.europa.eu/eurostat/web/gisco_Geographical_information_maps/introduction

NACE Rev. 2 sections B to S (NACE Rev. 1.1 sections C to O).

Labour costs are the total expenditure borne by employers for the purpose of employing staff. They include employee compensation, namely wages and salaries in cash and in kind, employers' social security contributions, vocational training costs, other expenditure, such as recruitment costs and expenses on working clothes, and employment taxes regarded as labour costs minus any subsidies received. These labour cost components and their elements are defined in Commission Regulation (EC) No 1737/2005 of 21 October 2005, modifying the Commission Regulation (EC) 1726/1999 of 21 July 1999, implementing Council Regulation (EC) No 530/1999 concerning structural statistics on earnings and labour costs as regards the definition and transmission of information on labour costs.

Data relating to the following three core indicators are included in this collection:

a) Average monthly labour costs, defined as total labour costs per month divided by the corresponding number of employees, expressed as full-time units;

b) Average hourly labour costs, defined as total labour costs per year divided by the corresponding number of hours worked;

c) Structure of labour costs by principal categories (wages and salaries and other  labour costs), defined as the labour costs of the category under consideration expressed as a percentage of total labour costs.

Hourly and monthly labour costs shall be provided in national currency. All definitions are laid down in Reg. 1738/2005.

Total annual labour costs (D) are defined as follows:

D = D1 + D2 + D3 + D4 - D5,  where

D1 = Compensation of employees

D2 = Vocational training costs

D3 = Other expenditure paid by the employer

D4 = Taxes

D5 = Subsidies received by the employer

Average hourly labour costs = (D1+ D2 + D3 + D4 - D5)/B1.

Total number of annual hours worked by all employees = B1.

Average monthly labour costs = (D1+ D2 + D3 + D4 -D5)/(12*(A11+ A121+ A131)). 

Total number of employees in full-time units = A1 = A11 + A121 + A131,where

A11 = Full-time employees (excluding apprentices)

A121 = Part-time employees converted into full-time units (excluding apprentices)

A131 = Apprentices converted into full-time units

Other labour costs (D12 + D2+ D3 + D4 - D5), where D12 = Employer's social contribution.

It has to be noted that apprentices are included.

The statistical unit is the enterprise or local unit.

The population comprises all units having employees.

Data are available for the EU Member States, Iceland and Switzerland.

Data are available from reference years 1997 to 2011.

This data collection has been discontinued in 2012.

Not applicable. 

Average monthly and hourly labour costs are expressed in Euro, national currencies (if different) and Purchasing Power Standards (PPS). The labour cost structure is quoted as a percentage.

Reference period is the calendar year.

The collection of annual Labour Cost data is based on gentlemen's agreements.

Not applicable.

Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.

Countries inform Eurostat if confidential data has to be flagged.

After plausibility and coherence checks, data are released on the Eurostat Reference Database.

Not applicable.

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see item 10 - 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.

Yearly.

Not applicable.

Not applicable.

Other related publications:

http://ec.europa.eu/eurostat/product?code=KS-FP-13-001&mode=view&language=en

http://ec.europa.eu/eurostat/product?code=KS-32-11-798&mode=view&language=en

Please consult free data on-line or refer to contact details.

Not applicable.

http://ec.europa.eu/eurostat

Refer to Annex.

Refer to Annex.

On arrival at Eurostat, labour cost data from countries are checked for completeness and consistency.

Not available.

Not available.

Not available.

Not all countries provide data for all variables and/or for all NACE aggregates.

Not available.

Not available.

Not available.

Countries are asked to transmit their reference year data (t) in the autumn of year t+1. The data are immediately made available for general distribution after favourable validation checks.

Not applicable.

Comparability of data across national borders may be affected by the use of different observation units and definitions, methods or classification schemes.

Comparability over time may be affected by new definitions and classifications used in the coding of data.

Annual labour costs data collection is closely related to other statistics in this field, but certain coherence problems should be taken into account when comparing data relating to the same variables from the four different sources (Labour Cost Survey - LCS, Structural Business Survey - SBS, Structure of Earnings Survey - SES and National Accounts - NA). Some of these problems are described in paragraph 21.1 of the ESMS file on Labour Cost Surveys "lcs_esms".

Not available.

Not applicable.

Since this data collection has been discontinued in 2012, no revision of previous reference years' data is forseen.

Not applicable.

Countries provide annual labour cost data using several statistical sources: the four-yearly Labour Cost Surveys, Labour Cost Index, business surveys, National Accounts, Labour Force Survey and/or administrative data.

Annual - up to reference year 2011.

The data are collected by the National Statistical Institutes using a combination of administrative data and dedicated surveys.

Data communicated by individual countries are checked for internal consistency and coherence with earlier data. No further adjustments are made.

Not applicable.

Not applicable.

This data collection has been discontinued in 2012.

For the data series referring to 2008 - 2011, see: item 21.3 below.

The time series in NACE Rev. 1.1 from 1996 to 2007 are fairly complete for most countries. Gaps still exist for some countries and a few years (particularly the most recent). The following aspects need to be taken into account when analysing the data:

• Apart from information from the four-yearly Labour Cost Surveys, data are generally missing for Belgium and Ireland.
• The data for Iceland concentrate on a limited number of variables and NACE sections.
• The data for France, Luxembourg, Austria and Finland are incomplete for some NACE Rev. 1.1 sections.
• The following country-specific information should be borne in mind when using the data:

a) Czech Republic: The 2001 and 2002 results for NACE Rev. 1.1 Sections H, K and O, particularly for enterprises with fewer than 20 employees, are characterised by fairly large coefficients of variation.

b) Denmark: break in the series of average monthly labour costs between 1999 and 2000 due to revisions of the number of employees. The NACE Rev. 1.1 Section C results are also characterised by fairly large coefficients of variation because of its small sub-population.

c) Spain: break in series between 2000 and 2001 caused by an extension of coverage to units of all sizes.

d) Luxembourg: break in the average monthly labour costs series for NACE Rev. 1.1 G-I and G-K aggregates between 1999 and 2000 as Section I data were not included before 2000.

e) United Kingdom: The NACE Rev. 1.1 Section C results are characterised by fairly large coefficients of variation because of its small sub-population.

Annual Labour Cost (ALC) data is based on the quadrennial Labour Cost Survey (LCS) data. ALC data for 2001-2004 is based on LCS 2000, and ALC data for 2005-2008 is based on LCS 2008 data.

f) Sweden, Germany: Data are calculated from the Labour Cost Index.

Eurostat also publishes estimates for the Annual Labour Cost levels based on the Labour Cost Index (LCI)

(See: http://ec.europa.eu/eurostat/statistics-explained/index.php/Labour_cost_index_-_recent_trends - Hourly labour cost in euros)

However, these LCI-based Annual Labour Cost levels may differ from labour costs annual data transmitted by the countries due to:

-        No strict revision policy in labour costs annual data transmitted by the countries (data  collection based on a gentlemen’s agreement);

-        In some countries, methodological differences in the definition of annual labour costs (LCI does not capture developments in e.g. training and hiring costs).