Back to top
National reference metadata

Luxembourg

Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.

For more information, please consult our metadata website section.

Close

Labour cost index (lci)

National Reference Metadata in ESS Standard for Quality Reports Structure (ESQRS)

Compiling agency: STATEC

Need help? Contact the Eurostat user support


Short metadata
Full metadata

The labour cost index contains the different components of labour costs (D1+D4-D5) defined by the  (CE) 1737/2005:

 

Not Applicable

In the context of the Labour Cost Index, Labour Costs are defined as core expenditure borne by employers for the purpose of employing staff. They include employee compensation, with wages and salaries in cash and in kind, employers' social security contributions and employment taxes regarded as labour costs minus any subsidies received, but not vocational training costs or other expenditure such as recruitment costs and spending on working clothes (by contrast with multiannual and annual labour cost data). These labour cost components and their elements are defined in Commission Regulation (EC) No 1737/2005 of 21 October 2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs.

The quarterly Labour Cost Index measures short-term trends in "average hourly labour costs", defined as (total) labour costs divided by the corresponding number of hours worked in the quarter in question (see Regulation (EC) No 450/2003 of the European Parliament and of the Council of 27 February 2003 concerning the labour cost index). Quarterly changes in hourly labour costs are calculated first for each economic sector (NACE Rev. 2. Sections) and then aggregated to the whole economy keeping a fixed structure (i.e. fixed weights) by industry (Laspeyres index). Therefore, the LCI does not discount the compositional effect derived from a change in the composition of employment within an economic sector. This means that, for instance, the LCI may increase due to the redundancies of low paid workers within one sector.

All labour cost indices are annual chain-linked Laspeyres indices. Trends in average hourly labour costs for an individual economic activity/country are weighted by the total labour costs associated with that activity., which are fixed for one year in order to obtain national aggregates.

LCI data are presented in the form of index numbers (current reference year: 2012) and annual and quarterly growth rates (comparison with the previous quarter).

Apart from the overall Labour Cost Index, indices are also available for the labour cost components "wages and salaries" and "employers' social security contributions plus taxes paid minus subsidies received by the employer (Labour costs other than wages and salaries)". For some Member States, an index excluding "bonuses" - defined as bonuses and allowances not paid in every remuneration period is also available.

For the NACE aggregates in the LCI, item and country weights are applied. These are available as shares of 1000, i.e. for item weights, each single weight sums up to 1000 for the total labour costs in a given country for the aggregate B to S. For the country weights, they are given in relation to the total labour costs for the country aggregate.

The statistical unit is the enterprise, regardless of size, i.e. the labour cost indices cover all units in the NACE sections considered.

LCI applies to all activities in sectors  B to S of NACE Rev. 2 and represents all statistical units.

Luxembourg.

Not Applicable

The LCI is subject to frequent but small revisions, due to corrected or updated rawdata lying underneath the index. The aggregates are rarely revised by more than 0.2 percentage points in either direction.

Not Applicable

Labour costs are measured in current prices in EURO.

The LCI relies on administrative data, ie on social security records, provided by the "Inspection générale de la sécurité sociale" (IGSS).

Not Applicable

According to the legal obligation, data are sent to Eurostat 70 days after the end of the reference period.

Not applicable.

As documented earlier in this report a change has occurred in the social security records. This change hampers the comparability of the indices between 2009 and the previous years. So to ensure comparability, the series from the social security records had to be adjusted.

The comparability issue was caused by the way the hours are recorded in the social security files. In the pre-2009 data the total hours corresponded in many cases to yearly averages. Thus, a full-time worker, with no overtime and no sick-leave was supposed to have worked 173 hours per month, independently from the number of potential working of each month. In the new system, the months have a variable length that takes into account the number of working days. Thus, the “benchmark” workers (full-time - no overtime - no sickness) are attributed the real number of working hours of that month. Consider the following example. Using the old rules, a benchmark worker would have been attributed 173 hours in January 2009. However, in January 2009, there have been 21 working days (Monday – Friday, excluding bank holidays). Thus, in the new system, the benchmark workers are attributed 21*8 = 168 hours.

It was possible to estimate a correction factor to be applied to the 2009 data. This factor makes the hours recorded in 2009 comparable to those recorded before 2009.