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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.

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Labour cost levels by NACE Rev. 2 activity (lc_lci_lev)

Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Eurostat, the statistical office of the European Union

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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.

The labour cost levels are based on the latest Labour Cost Survey (currently 2016) and an extrapolation based on the quarterly Labour Cost Index (LCI). The levels are available in euro and national currency.

The Labour Cost Survey is a four-yearly survey that collects levels of labour costs at a very detailed level. For the purpose of extrapolating with the LCI, data are only used at a very aggregated level.

The quarterly LCI is a Euro Indicator which measures the cost pressure arising from the production factor "labour". The data covered in the LCI collection relate to total average hourly labour costs and to the labour cost categories "wages and salaries" and "employers' social security contributions plus taxes paid minus subsidies received by the employer". Data - also broken down by economic activity, are available for the EU aggregates and EU Member States (NACE Rev 2 Sections B to S), in working day and seasonally adjusted form. The data on the Labour Cost Index are given in the form of index numbers (current reference year: 2016) and of annual and quarterly growth rates (comparison with the previous quarter, or the same quarter of the previous year).

The data are estimated by the National Statistical Institutes on the basis of available structural and short-term information from samples and administrative records for enterprises of all sizes.

27 March 2020

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 1726/1999 of 27 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.

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 paragraphs 11.26 to 11.31 of Annex A, Chapter 11, to Council Regulation (EC) No 2223/1996 of 25 June 1996 on the European system of national and regional accounts in the Community for the definition of hours worked). Annual figures are calculated as the arithmetic mean of the quarterly values.

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/country, which are fixed for one year in order to obtain national or European aggregates.

LCI data are presented in the form of index numbers (current reference year: 2016) 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.

The statistical unit can be the enterprise or the local unit, with 10 or more employees. Although the labour cost indices cover all units in the NACE sections considered, the basis from the labour cost survey does not cover small businesses.

The LCS applies to all activities in sectors B to S excl. O of NACE Rev. 2 and represents all statistical units, with 10 or more employees.

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

Data are available for the EU and Euro area aggregates and all EU Member States. Data are also available for Norway.

The annual data cover the whole calendar year.

The quarterly LCI is subject to frequent revisions, due to corrected or updated rawdata lying underneath the index. The European aggregates are rarely revised by more than 0.2 percentage points in either direction. As the labour cost levels are based on the annual LCI revisions are smaller and less frequent. They may however occur.

Units of currency, i.e. Euro and National Currencies.

Labour costs are measured in current prices in national currencies.

EU aggregates are obtained as weighted averages of the national data. To create comparable weights, data from non-Euro countries are converted into Euros.

Member States may produce the necessary estimates by using surveys, other appropriate sources such as administrative data and statistical estimation procedures.

Different estimation methods are used, including the application of growth rates of the average hourly labour costs to the results of the latest structural survey, reference to separate growth rates for labour costs and hours worked, or the application of growth rates of some labour cost components to all or other labour cost components.

Annual.

According to the legal obligation, LCI data are sent to Eurostat 70 days after the end of the reference period. The data are then made available for general distribution subject to favourable checks.

Data are comparable between countries. Note that the LCI does not give information on the level of labour cost in a specific Member State, but about its development only.

Data are comparable over time.