Labour cost index (lci)

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

Compiling agency: Statistics Denmark


Eurostat metadata
Reference metadata
1. Contact
2. Statistical presentation
3. Statistical processing
4. Quality management
5. Relevance
6. Accuracy and reliability
7. Timeliness and punctuality
8. Coherence and comparability
9. Accessibility and clarity
10. Cost and Burden
11. Confidentiality
12. Comment
Related Metadata
Annexes (including footnotes)
 



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1. Contact Top
1.1. Contact organisation

Statistics Denmark

1.2. Contact organisation unit

Personal Finances and Welfare, Earnings and Labour Statistics Division

1.5. Contact mail address

Sejrøgade 11, 2100 Kbh. Ø


2. Statistical presentation Top
2.1. Data description

The data for the Danish LCI regarding private enterprises are collected from a sample of about 5,000 enterprises in a collaboration with the main Danish employer organizations, which collects the data among their own members and provide the data for Statistics Denmark. Enterprises without membership of the employer organizations are reporting their data directly to Statistics Denmark.

In contrast to private enterprises, data on central and local governmental institutions is not based on a sample, but covers the entire population of employees, employed by the state, municipalities and the hospital operating regions (former counties). Regarding the central governmental institutions the data are collected from the payroll systems, operated by the Danish Ministry of Finance, the Danish Ministry of Defence as concerns the armed forces, the Ministry of Education and by the Danish State Railway Agency, DSB. Data concerning the local governmental employee, covering all Danish municipalities and regions, are collected and reported by KRL1, a special service agency supporting the municipalities and regions in their continuous budgeting and financial planning process with relevant statistical data and analysis on local governmental staff issues.


1 Kommunernes og Regionernes Løndatakontor

2.2. Classification system

The Danish LCI covers sections B-S according to NACE Rev. 2.

2.3. Coverage - sector

The Danish LCI measures quarterly developments in Danish labour costs per hours worked in the overall Danish economy and covers the private sector enterprises as well as the public institutions.

2.4. Statistical concepts and definitions

The Danish LCI measures quarterly developments in Danish labour costs per hours worked.

2.5. Statistical unit

Private and public enterprises within NACE sections B-S.

2.6. Statistical population

Private enterprises with more than 9 full time employee and the total population of public (central and local governmental) enterprises and institutions within NACE sections B-S.

2.7. Reference area

Solely main land Denmark. Greenland is not covered by the Danish LCI.

2.8. Coverage - Time

The Danish LCI covers back data from 1996 onwards. Until 2007 only the private sector and sections C-K according to NACE Rev. 1.1 is covered. From 2008 onwards all sectors and sections B-S according to NACE Rev. 2 are covered.

2.9. Base period

The base year for the Danish LCI is 2016.


3. Statistical processing Top
3.1. Source data

The data for the Danish LCI regarding private enterprises are collected from a sample of about 5,000 enterprises in a collaboration with the main Danish employer organizations, which collects the data among their own members and provide the data for Statistics Denmark. Enterprises without membership of the employer organizations are reporting their data directly to Statistics Denmark.

In contrast to private enterprises, data on central and local governmental institutions is not based on a sample, but covers the entire population of employees, employed by the state, municipalities and the hospital operating regions (former counties). Regarding the central governmental institutions the data are collected from the payroll systems, operated by the Danish Ministry of Finance, the Danish Ministry of Defence as concerns the armed forces, the Ministry of Education and by the Danish State Railway Agency, DSB. Data concerning the local governmental employee, covering all Danish municipalities and regions, are collected and reported by KRL2, a special service agency supporting the municipalities and regions in their continuous budgeting and financial planning process with relevant statistical data and analysis on local governmental staff issues.


2 Kommunernes og Regionernes Løndatakontor

3.2. Frequency of data collection

Quarterly data collection for the main labour cost and hours worked components. Annually collection of a minor supplementary part of ofther labour costs (payroll taxes, various social contributions) within private enterprises.  

3.3. Data collection

The data covering the labour cost items D11, the main part of D12 and hours worked is reported quarterly on the level of individual employees. More than 95 percent of this data is reported as data extractions from the enterprises and central and local governmental payroll systems, and only a minor share of the respondent private enterprises choose to fill out an internet3 based questionnaire4. The reference period of the source data is one single pay event in the middle month of the quarter, typically covering one month for fixed salary earners and two weeks for wage earners paid by the hour.

The remaining share of the data, covering the residual part of D12 and the other cost components in private enterprises, is collected on an annual basis. This data is reported on the level of the enterprise only and provided through an internet questionnaire. In principle the entire population of Danish employees in enterprises with more than ten full time employees and all central and local governmental employees are covered by the source data.

 


3 WWW.VIRK.DK

4 Normally enterprises only will choose to fill out questionnaires if they have technical obstacles in their payroll systems in providing the necessary data as required by Statistics Denmark. Since the required data is on the level of individual employees, it naturally is very burdensome to use this manually method of data reporting.

3.4. Data validation

The received data is validated on several levels through the steps in the production process. Already by the receipt of the data, a rough search for errors is performed, for example of whether the period of the payroll is as expected and whether the general format is adhered to. If this is not the case, the person or company responsible for the transmission is contacted either by mail or phone and asked to correct the error and retransmit. During the actual production of statistics, the data is validated more thoroughly. This is done both on the individual level, where for example it is checked whether there are missing values on hours worked and wage, and on firm level where for example average pay per hour and number of employees are compared to data transmitted for previous quarters.

3.5. Data compilation

Please refer to 6.3.1. on coverage.

3.6. Adjustment

The Danish LCI is submitted as working day adjusted and seasonally and working day adjusted index series.


4. Quality management Top
4.1. Quality assurance

Statistics Denmark follows the principles in the Code of Practice for European Statistics (CoP) and uses the Quality Assurance Framework of the European Statistical System (QAF) for the implementation of the principles. This involves continuous decentralized and central control of products and processes based on documentation following international standards. The central quality assurance function reports to the Working Group on Quality. Reports include suggestions for improvement that are assessed, decided and subsequently implemented.

4.2. Quality management - assessment

Statistics Denmark follows the recommendations on organisation and management of quality given in the Code of Practice for European Statistics (CoP) and the implementation guidelines given in the Quality Assurance Framework of the European Statistical System (QAF). A Working Group on Quality and a central quality assurance function have been established to continuously carry through control of products and processes.


5. Relevance Top
5.1. Relevance - User Needs

The users of the Danish LCI are at the moment primarily Eurostat and the European Central Bank. Since autumn 2003 Statistics Denmark also disseminated figures on the annual LCI growth rates for the Member States and the USA every quarter, in order to place the development of Danish labour costs in an international perspective. The release of these figures was however suspended by the end of 2022 due to a prioritisation decision made by the board of directors at Statistics Denmark.

5.2. Relevance - User Satisfaction

User satisfaction has not been investigated or quantified. However, feedback or questions from Eurostat on the Danish results are very rare, thus indicating a certain user satisfaction.

5.3. Completeness

The regulation (EC) 450/2003 is fully implemented.

Remarks on back data on “old” LCI aggregates, broken down by NACE Rev.1.1

Statistics Denmark has compiled and submitted the required back data from 1st quarter 1996 and onwards to Eurostat. However, there is a break in the series at 2nd quarter 1999, which is caused by the lack of raw data from 1st quarter 1996 to 4th quarter 1998. The only data available for this time period are the quarterly historical growth rates in the nationally published Index of Average Earnings. Thus, to be able to construct the LCI back data for those two years, it has been necessary to develop models based on the actual data for the years 1999 and onwards. Statistics Denmark applied multivariate regression analysis for this purpose, using the quarterly growth rates of the Index of Average Earnings as the main explanatory variable and the growth rates for the four LCI series on total labour costs, total labour costs excl. bonuses, other labour costs and wages and salaries as response variables.

The regression analysis resulted in “feasible” models with R2 values amounting to more than 70 percent and highly significant parameter estimates for LCI_TOT, LCI_TXB and LCI_WAG, whereas modeling the LCI_OTH showed to be more difficult. Having the regression models, we estimated the quarterly growth rates for the four LCI series for 1st quarter 1996 to 1st quarter 1999, which finally completed the four LCI series back to 1996.

As already stated above, the back data are fully comparable from 2nd quarter 1999 onwards, since the compilation method has not been changed during that period. That means that the coverage of the basic data in principle is of the same amount for the back data regarding this period as it is the case for the data in general today. However, the exact coverage on quarterly basis differs in practice slightly from quarter to quarter due to erroneous data reports, resulting in exclusion of these enterprises when compiling the quarterly growth rates for the NACE sections.

5.3.1. Data completeness - rate

100 percent.


6. Accuracy and reliability Top
6.1. Accuracy - overall

The overall reliability of the index is considered to be reasonably high. This is based on the fact that the number of enterprises in the sample should be sufficient and that the coarse search for errors before the production process make sure to sort out observations with errors. This is especially true for the largest NACE sections of economic activity. However, for the smallest sections of economic activity the accuracy are lower. E.g. NACE section B Mining and quarrying is always held confidential due to a very small sample size. 

6.2. Sampling error

Not available at the current moment.

6.2.1. Sampling error - indicators

Not available at the current moment.

6.3. Non-sampling error

See below.

6.3.1. Coverage error

Coverage

The data for the Danish LCI regarding private enterprises are collected from a sample of about 5,000 enterprises in a collaboration with the main Danish employer organizations, which collects the data among their own members and provide the data for Statistics Denmark. Enterprises without membership of the employer organizations are reporting their data directly to Statistics Denmark.

In contrast to private enterprises, data on central and local governmental institutions is not based on a sample, but covers the entire population of employees, employed by the state, municipalities and the hospital operating regions (former counties). Regarding the central governmental institutions the data are collected from the payroll systems, operated by the Danish Ministry of Finance, the Danish Ministry of Defence as concerns the armed forces, the Ministry of Education and by the Danish State Railway Agency, DSB. Data concerning the local governmental employee, covering all Danish municipalities and regions, are collected and reported by KRL (Kommunernes og regionernes løndatakontor) , a special service agency supporting the municipalities and regions in their continuous budgeting and financial planning process with relevant statistical data and analysis on local governmental staff issues.

The data covering the labour cost items D11, the main part of D12 and hours worked is reported quarterly on the level of individual employees. More than 95 percent of this data is reported as data extractions from the enterprises and central and local governmental payroll systems, and only a minor share of the respondent private enterprises choose to fill out an internet based questionnaire . The reference period of the source data is one single pay event in the middle month of the quarter, typically covering one month for fixed salary earners and two weeks for wage earners paid by the hour.

The remaining share of the data, covering the residual part of D12 and the other cost components in private enterprises, is collected on an annual basis. This data is reported on the level of the enterprise only and provided through a paper or an internet questionnaire. In principle the entire population of Danish employees in enterprises with more than ten full time employees and all central and local governmental employees are covered by the source data. The table shows the degree of coverage, broken down by NACE sections.

  Number of full time employee Data coverage
NACE a) covered by LCI data b) in total according to Central Business Register a)/b)
B Mining and quarrying 3.395 3.594 94,5%
C Manufacturing 257.263 277.093 92,8%
D Electricity, gas, steam and air conditioning supply 10.124 11.272 89,8%
E Water supply; sewerage, waste management and remediation activities 8.459 10.088 83,9%
F Construction 112.107 155.363 72,2%
G Wholesale and retail trade; repair of motor vehicles and motorcycles 258.219 321.907 80,2%
H Transportation and storage 94.449 107.940 87,5%
I Accommodation and food service activities 41.060 65.074 63,1%
J Information and communication 88.381 105.901 83,5%
K Financial and insurance activities 71.903 80.922 88,9%
L Real estate activities 21.924 37.117 59,1%
M Professional, scientific and technical activities 115.464 146.450 78,8%
N Administrative and support service activities 89.329 107.180 83,3%
O_Q Public administration, education and health care 808.108 831.960 97,1%
R Arts, entertainment and recreation 20.851 28.703 72,6%
S Other service activities 30.879 48.955 63,1%
Total 2.031.915 2.339.519 86,9%

 

The coverage table shows that the LCI data covers 87 percent of all Danish full time employee. The lowest data coverage with about 59 and 63 percent is seen in sections  L Real estate activities and Accommodation and food service activities respectively, which is due to the fact that a relatively large part of employee working within that sections are employed in relatively small businesses with less than ten employee and which are not covered by the data collection. However, in practice also some other coverage shortcomings still remain in the LCI data, e.g. due to rejecting some of the data in the statistical validation process. Those data rejections differ in amount from quarter to quarter. See also the remarks on that topic under 6.3.4.1. (Estimation).

6.3.1.1. Over-coverage - rate

There exists no over-coverage at all in the Danish LCI. All units (enterprises) are relevant for the target population.

6.3.1.2. Common units - proportion

Not relevant

6.3.2. Measurement error

Not relevant

6.3.3. Non response error

Not relevant

6.3.3.1. Unit non-response - rate

Not relevant

6.3.3.2. Item non-response - rate

Not relevant

6.3.4. Processing error

See 6.3.4.1. below.

6.3.4.1. Imputation - rate

Frequency

All cost items under D11 and payments to pension schemes under D12 are reported and updated quarterly. The data on the remaining other labour costs are collected once a year with the previous year as reference period. Please also refer to the remarks under the revision history under 6.5.

Estimation

In principle there are no missing enterprises in the Danish sample, since they are obliged by law to report the data. Continuous refusal is reported by Statistics Denmark to the Danish legal authorities and can finally be brought to court. Since the enterprises are obliged to report for all their employee, there are no missing groups of employee neither.

In practice however some data reports are more or less erroneous, which make them unusable for statistical purposes. If it is possible for Statistics Denmark to receive a new data report from an enterprise with erroneous data timely enough to include it in the current index compilations, there is no problem. If this on the other hand is not an option, these enterprises are excluded from the compilations of the LCI. In practice this is handled by exclusion of enterprises  with erroneous data in the current and previous quarter, when compiling the quarterly growth rates, which finally are linked to the index series. In that way it is in fact assumed that growth rates for enterprises with erroneous data are imputed as equal to the grossed up average of those enterprises for the corresponding NACE section, of which the data has been statistically accepted and actually applied in the compilations.

Hours worked

The information collected of relevance for the calculation of various variables on working time in the Danish earnings and labour cost statistics is

a) contracted hours per week for salaried employees
b) number of holidays per year with full payment
c) information on the cycle of payment of the employee, i.e. if he/she is paid monthly, every two weeks or weekly
d) information whether the employee is a fixed salaried employee or a hourly paid worker
e) number of hours worked within the reference period for wage earners paid by the hour
f) number of hours of absence due to sickness, maternity etc. within the reference period for wage earners paid by the hour
g) number of holidays within the reference period without any payment within the reference period for  salaried employees
h) number of days of absence within the reference period, paid or not paid by the employer
i) number of paid overtime hours within the reference period for wage earners paid by the hour
j) number of paid overtime hours within the reference period for salaried employees
k) information on various registration dates, e.g. on hiring, on obtaining conditions of employment and on obtaining state of current occupation etc.

This description only concerns the compilation of hours worked in the national index and the LCI. In contrast to the annually conducted survey, which also forms the basis for the four-yearly Labour Cost Survey (LCS) and the Structure of Earnings Survey (SES), the information on registration dates (k) is not used in the compilations of hours worked in the quarterly survey. Since the reference period for the data collection is just one single payment period within the reference quarter, the share of employees actually hired during this one month has shown to be negligible in the data, without any significant effect on the grossed up estimates, where it in contrast is crucial to take into account in the yearly surveys and there forms a key item in the compilation of hours worked.

The compilation of hours worked H for a standardized month of 52/12=4.33 weeks in the quarterly survey is firstly processed on the individual employee level and secondly grossed up to the level of the local business unit. In detail it depends on whether a specific employee i gets a fixed salary e.g. every month or if he/she is a worker, which is paid per hour. In the latter case the calculation is quite simple and straightforward:

Hi=xc*e

The data on hours worked in the case of hourly paid workers is simply reported directly by the enterprises. It comprises paid overtime, which also is reported separately as j) and excludes hours on absence, reported as f).

xcis a factor depending on c). If the employee receives his payment once a month, then

I.                   xc=1,

since the data on overtime and absence corresponds to the whole month. If the employee receives his payment twice a month, then

II.                 xc=4.33/2

 

In case of weekly paid workers, the reported hours worked per month has to be grossed up with

III.                xc=4.33 .

 

In the case of employees receiving a fixed salary, it is in principle much more complicated:

   Hi=4.33*a+xc*(j-a/5*(g+h))

 Thus in the case of employees receiving a fixed salary, the hours worked has to be constructed, using the reported data on contracted hours, paid overtime hours and days of absence converted into hours.

 As regards the factor xc the conditions I to III above also applies in the case of salaried employees, although it occurs very rarely that a salaried employee is reported as paid weekly by the enterprises, and condition III therefore almost never is the case.

 

General remarks regarding the data on absence for fixed salaried employees due to holidays

The calculation of hours worked in the case of salaried employees should ideally also take into account the data on holiday with full payment, reported as b). Since this data is on an annual basis and no information on the actual timing of the employees taking their vacation is available, the method implicitly assumes that the holidays are even spread over the whole year. That means that an employee, having 25 holidays per year, is assumed to take 25/12=2.0833 days, reducing hours worked with 2.0833*a/5 hours in one month.

The calculation of the Danish LCI is however based on chained quarterly growth rates. Spreading the holidays over the whole year has an impact on levels of labour costs but is neutral on quarterly growth rates, when imposed identically in the calculation for quarter t-1 and t. Thus b) is not explicitly imposed in the formula for hours worked for salaried employees, since it has no effect on changes.

 

Since 1998 the achievement of additional special holidays have been an important issue in the bargaining of collective agreements in Denmark, and the main part of the employees have through the years obtained up to 5 days of extraordinary holidays besides the “normal” level of 25 days for a full time employee. In contrast to the ordinary holidays the employee can decide to convert these holidays into money, i.e. to sell them. It has shown to be very difficult for the enterprises to handle the individual registration, whether an employee actually takes a holiday or decides to sell it. Thus Statistics Denmark has no reasonable basic data to solve this problem. Instead the effect on growth rates5 is compiled “outside the system”, gradually and in coherence with the collectively achieved rights for additional holidays and chained to the calculated growth rate on basic data in the particular quarter, when the entitlement to the additional holiday according to the collective agreement actually is achieved.

 


5 In practice one extra holiday increase the growth in labour costs for an individual employee with approximately 0.4 percent. Basically it does not matter if the holiday actually is taken or converted into money, since either the denominator decreases when the holiday is actually taken or the numerator increases if it is sold.

6.3.5. Model assumption error

Not relevant

6.4. Seasonal adjustment

Seasonal adjustment is conducted by X-12 Arima modelling. The Software used at the moment still is Demetra version 2.1. It was expected that this would be changed to JDemetra+ by the end of 2020. However, the COVID-19 pandemic had increased the demand for high frequential statistics, which together with comprehensive changes in staff working with earnings and labour cost statistics resulted in high work loads at Statistics Denmark, making the implementation of JDemetra+ to be postponed. Thus it is still not possible at the moment to attach the requested LCI Template for quality reporting on seasonal adjustment, since the current version af the software used is not applicable for this task.

6.5. Data revision - policy

Please refer to 6.3.1. above.

Revisions of the Danish LCI have so far been relatively rare, and normally all revisions are caused either by updating a data source on some of the components on “other labour costs”, which in the Danish case only amount for a minor share of total labour costs or by necessary corrections due to the timeliness problem, described in section 7 of this quality report. The latter mentioned however is not relevant anymore since 1st quarter 2014. The 2020 revision of the LCI were however also affected by inclusion of a number of extra-budgetary units within local and central government, which by mistake unfortunately not had been included in the quarterly payroll data sources so far. Although some of the minor NACE aggregates, such as sections E and S, were affected substantially, their overall impact on the growth rates of the LCI_TOT is quite limited.

 All revisions are usually implemented in the 1st quarter of a year in the LCI series.

Revision due to delayed collection of “other labour costs” on annual basis

The main data source for the Danish LCI is the quarterly data on wages and salaries, payments to employee’s pension schemes and hours worked. This data also forms the basis of calculating the Danish national Index of Average Earnings, a very important economic key indicator. Besides being an analytical figure on the business cycle, this index e.g. is used broadly in the continuous adjustments of private and public business contracts. This application of the index in the real economy makes the dissemination of preliminary figures not practicable. Thus when published, the Danish Index of Average Earnings is always considered final, which requires data of very high quality.

The Danish LCI however also covers other labour costs than wages and salaries under D11 and payments to pension schemes under D12. In contrast to the data on wages and salaries this data on other costs is only collected annually. At the moment the latest data on other labour costs regards reference year 2021 and are implemented in the LCI compilations regarding the period of 1st quarter 2021 to 1st quarter 2023.

Revisions due to preliminary (and confidential) results for 1st quarter in general

In order to meet the legal deadline to calculate and to transmit the LCI series within 70 days after the reference period, the Danish LCI transmission regarding 1st quarter of a year were until 2014 based on data, which had not reached the final stage of the validation process, ensuring utmost high data quality. Statistics Denmark therefore transmitted provisional LCI data on 1st quarter of a year, which however were kept confidential and not published by Eurostat. In consequence data on 1st quarter always - until 2014 - were due to minor revisions, when Statistics Denmark submitted the LCI updates for 2nd quarter to Eurostat. However, from 2015 onwards the issue of delayed data transmissions regarding 1st quarter of a year has been solved. Consequently this is no longer a source of revising the LCI updates in the future.

Inclusion of extra-budgetary units within local and central government

The 2020 revision of the LCI were affected by inclusion of a number of extra-budgetary units within local and central government, which by mistake unfortunately not had been included in the quarterly payroll data sources so far. Although some of the minor NACE aggregates, such as sections E and S, were affected substantially, their overall impact on the growth rates of the LCI_TOT however were quite limited. This resulted in a minor break in the LCI series from 2018Q1 onwards.

Substantial revisions 2022 due to non-standard governmental schemes to handle the COVID-19 pandemic

The effects of the revision undertaken in June 2022 after the submission of the Danish LCI_TOT updates 1st quarter 2022 are highly effected by the COVID-19 pandemic, especially due to data on other labour costs regarding the non-standard schemes on wage compensation paid out to enterprises.

 

Table 1 show the figures, prior to the lates revision from June 2023, which only results from the delayed collection on other labor costs on annual basis and the implementation of the data in the LCI compilations. Table 2 show the post-revision figures and correspondingly table 3, showing the differences and as such the effects, broken down by NACE and measured by percentage points.

The overall conclusion is that the June 2023 revision on other labour costs mainly has affected the figures on NACE sections K Financial and insurance activities by 0.5 percentage points and F Construction by 0.4 percentage points on average over the years 2020 to 2022.

 Table 1: Annual growth rates for LCI_TOT 1st quarter 2020 to 4th quarter 2022 prior to June 2023 revision

NACE 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4
RB 6,6% 4,6% 4,0% 1,6% 1,2% 5,8% 2,6% 4,2% 3,1% 4,4% 5,5% 5,1%
RC 3,0% 1,7% 0,2% 0,5% 2,0% 3,1% 4,7% 4,0% 1,0% 2,0% 3,5% 4,1%
RD 3,2% 0,0% 3,1% -0,4% 0,7% 17,5% 5,8% 3,0% 12,1% 4,5% 3,5% 12,7%
RE 0,5% -0,7% 0,3% 0,4% 1,9% 4,9% 7,0% 8,0% 1,6% 5,3% 4,6% 5,8%
RF -0,4% -3,5% -1,4% 0,9% 3,7% 4,5% 4,0% 4,2% -1,3% 2,9% 2,7% 1,4%
RG 0,3% 2,4% 0,5% 0,6% 4,7% 0,9% 3,8% 2,5% 1,2% 2,6% 3,0% 3,0%
RH 0,4% 2,5% 1,2% 1,5% 3,2% 1,9% 3,5% 4,3% 1,0% 2,4% 3,4% 2,0%
RI 0,2% 11,5% -0,1% -0,3% 4,9% -10,0% 0,9% -0,5% -3,6% 0,7% 2,9% 4,7%
RJ 1,3% -0,2% 0,3% 0,4% 1,2% 4,5% 3,8% 2,1% 2,4% 2,9% 2,3% 1,8%
RK 0,4% -1,7% 0,1% -0,1% 1,4% 5,0% 4,4% 2,2% 1,8% 1,9% 1,1% 1,5%
RL 1,2% 0,1% 1,3% 0,9% 1,4% 12,1% 5,0% 2,1% 2,2% 3,1% 4,3% 2,6%
RM 2,0% -0,4% 0,2% 1,1% 2,9% 5,6% 5,9% 0,4% 0,6% 0,3% 0,3% 3,2%
RN 2,7% 1,0% 0,8% 0,9% 1,4% 1,9% 3,4% 3,4% 1,8% 6,7% 5,9% 5,6%
RO 0,3% 0,3% 1,5% 0,9% 0,1% 2,4% 1,5% 2,8% 3,0% 3,5% 3,8% 3,7%
RP 1,6% 0,9% 1,8% 1,1% 0,9% 2,4% 1,4% 1,4% 1,6% 0,9% 2,0% 2,6%
RQ 1,7% 1,2% 1,6% 1,6% 0,6% 1,1% 0,8% 0,8% 2,7% 2,6% 2,1% 3,6%
RR 2,5% 8,8% 1,7% 0,8% 4,7% -2,1% 4,1% 4,1% -1,2% -0,1% 0,6% 1,1%
RS 2,1% 2,6% 3,7% 1,8% 2,9% 4,5% 3,0% 1,1% 1,3% 0,4% 1,5% 2,2%

 Table 2: Annual growth rates for LCI_TOT 1st quarter 2020 to 4th quarter 2022 after the June 2023 revision

NACE 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4
RB 6,6% 4,6% 4,0% 1,6% 1,3% 5,9% 2,7% 4,3% 3,1% 4,4% 5,5% 5,1%
RC 3,0% 1,7% 0,2% 0,5% 2,6% 3,6% 5,4% 4,6% 1,0% 2,0% 3,5% 4,1%
RD 3,2% 0,0% 3,1% -0,4% 1,2% 18,0% 6,3% 3,5% 12,0% 4,4% 3,5% 12,7%
RE 0,5% -0,7% 0,3% 0,4% 2,8% 5,7% 7,9% 8,8% 1,5% 5,2% 4,6% 5,8%
RF -0,4% -3,5% -1,4% 0,9% 4,9% 5,6% 5,1% 5,3% -1,2% 2,9% 2,6% 1,4%
RG 0,3% 2,4% 0,5% 0,6% 5,6% 1,7% 4,7% 3,3% 1,2% 2,6% 3,0% 2,9%
RH 0,4% 2,5% 1,2% 1,5% 3,6% 2,3% 3,9% 4,7% 1,0% 2,4% 3,4% 2,0%
RI 0,2% 11,5% -0,1% -0,3% 5,6% -9,4% 1,6% 0,2% -3,6% 0,7% 2,9% 4,7%
RJ 1,3% -0,2% 0,3% 0,4% 1,7% 5,0% 4,3% 2,6% 2,3% 2,9% 2,3% 1,8%
RK 0,4% -1,7% 0,1% -0,1% 2,9% 6,3% 5,9% 3,7% 1,8% 1,9% 1,1% 1,4%
RL 1,2% 0,1% 1,3% 0,9% 1,9% 12,5% 5,5% 2,5% 2,2% 3,1% 4,2% 2,5%
RM 2,0% -0,4% 0,2% 1,1% 3,8% 6,4% 6,9% 1,3% 0,6% 0,3% 0,3% 3,2%
RN 2,7% 1,0% 0,8% 0,9% 2,5% 2,9% 4,5% 4,4% 1,8% 6,6% 5,7% 5,5%
RO 0,3% 0,3% 1,5% 0,9% 0,0% 1,9% 1,3% 2,6% 2,9% 3,2% 3,6% 3,7%
RP 1,6% 0,9% 1,8% 1,1% 1,0% 2,4% 1,5% 1,4% 1,6% 0,9% 2,0% 2,6%
RQ 1,7% 1,2% 1,6% 1,6% 0,7% 1,3% 1,0% 0,9% 2,7% 2,6% 2,1% 3,5%
RR 2,5% 8,8% 1,7% 0,8% 5,4% -1,5% 4,7% 4,6% -1,2% -0,1% 0,6% 1,0%
RS 2,1% 2,6% 3,7% 1,8% 3,8% 5,4% 3,9% 2,0% 1,3% 0,4% 1,5% 2,2%

 Table 3: Effect on annual growth rates for LCI_TOT 1st quarter 2020 to 4th quarter 2022 after the June 2023 revision 

NACE 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2022Q4
RB 0,0% 0,0% 0,0% 0,0% 0,1% 0,1% 0,1% 0,1% 0,0% 0,0% 0,0% 0,0%
RC 0,0% 0,0% 0,0% 0,0% 0,6% 0,6% 0,6% 0,6% 0,0% 0,0% 0,0% 0,0%
RD 0,0% 0,0% 0,0% 0,0% 0,5% 0,5% 0,5% 0,5% -0,1% 0,0% 0,0% -0,1%
RE 0,0% 0,0% 0,0% 0,0% 0,9% 0,8% 0,9% 0,8% 0,0% 0,0% 0,0% -0,1%
RF 0,0% 0,0% 0,0% 0,0% 1,1% 1,1% 1,1% 1,1% 0,0% 0,0% 0,0% 0,0%
RG 0,0% 0,0% 0,0% 0,0% 0,9% 0,8% 0,9% 0,9% 0,0% 0,0% 0,0% 0,0%
RH 0,0% 0,0% 0,0% 0,0% 0,4% 0,4% 0,4% 0,4% 0,0% 0,0% 0,0% 0,0%
RI 0,0% 0,0% 0,0% 0,0% 0,7% 0,6% 0,6% 0,6% 0,0% 0,0% 0,0% 0,0%
RJ 0,0% 0,0% 0,0% 0,0% 0,5% 0,5% 0,5% 0,5% 0,0% 0,0% 0,0% 0,0%
RK 0,0% 0,0% 0,0% 0,0% 1,5% 1,3% 1,5% 1,5% 0,0% 0,0% 0,0% 0,0%
RL 0,0% 0,0% 0,0% 0,0% 0,5% 0,4% 0,5% 0,5% 0,0% 0,0% 0,0% 0,0%
RM 0,0% 0,0% 0,0% 0,0% 0,9% 0,9% 0,9% 0,9% 0,0% 0,0% 0,0% 0,0%
RN 0,0% 0,0% 0,0% 0,0% 1,1% 1,0% 1,0% 1,1% 0,0% -0,2% -0,1% -0,1%
RO 0,0% 0,0% 0,0% 0,0% -0,1% -0,5% -0,2% -0,2% -0,1% -0,3% -0,2% 0,0%
RP 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
RQ 0,0% 0,0% 0,0% 0,0% 0,1% 0,2% 0,2% 0,1% 0,0% 0,0% 0,0% -0,1%
RR 0,0% 0,0% 0,0% 0,0% 0,7% 0,6% 0,6% 0,6% -0,1% 0,0% 0,0% 0,0%
RS 0,0% 0,0% 0,0% 0,0% 1,0% 0,9% 0,9% 0,9% 0,0% 0,0% 0,0% 0,0%

 

6.6. Data revision - practice

Please refer to 6.3.1. and 6.5. above.

6.6.1. Data revision - average size

Please refer to 6.5. above.


7. Timeliness and punctuality Top
7.1. Timeliness

2020Q1: t+ 70 days

2020Q2:  t+ 70 days

2020Q3:  t+ 70 days

2020Q4:  t+ 70 days

7.1.1. Time lag - first result

Not relevant anymore since 2nd quarter 2014. All LCI submissions are in principal final except from the annually revisons conducted due to new data on other labour costs, covering residual parts of D12, D4 and D5.

7.1.2. Time lag - final result

Please refer to 7.1.1.

7.2. Punctuality

The punctuality is in general quite high, and delays in the submission of the Danish LCI series to Eurostat are very rare. However, there was a delay regards the LCI updates on 2019Q4 caused by a new legislation on annualy accrual of holiday payments.

7.2.1. Punctuality - delivery and publication

See 7.1. Timeliness.


8. Coherence and comparability Top
8.1. Comparability - geographical

The Danish LCI is following the common definitions set in the European legislation (especially Regulation (EC) 450/2003) and as such is comparable with the LCI from other countries in the EU. However, in practice their might be differences in national methodolgies concerning data sources and compilation methods, which users should be aware of and have in mind when comparing the figures. 

8.1.1. Asymmetry for mirror flow statistics - coefficient

Not relevant

8.2. Comparability - over time

Please also refer to 5.3. Completenss.The “old” LCI figures broken down by NACE Rev. 1.1 for 2nd quarter 1999 to 4th quarter 2008 are fully comparable, since the compilation method has not been changed and the basic data are of the same quality for all quarters. Back data for earlier years are - due to a lack of raw data for this period - in contrast rough model estimates, based on historical growth rates of the Danish Index of Average Earnings. Thus it is quite clear that the quality of figures covering this early period is on a lower level.

Especially the model results for the Danish LCI_OTH for the period before 2nd quarter 1999 are questionable. It appeared to be almost impossible to estimate reasonable models for the quarterly pattern of this labour cost component. But, since there is no better information available, it is not possible to conclude anything quantitative on the difference in quality between 1996-1999 and 1999-2008.

Regarding the “new” LCI figures, broken down by NACE Rev. 2, on the other hand there is no break in the series from 2000 onwards. Thus, at this stage all “new” LCI aggregates are fully comparable from 1st quarter 2000 to 2nd quarter 2018.

8.2.1. Length of comparable time series

Please refer to 8.2. above.

8.3. Coherence - cross domain

Full comparability over all NACE sections.

8.4. Coherence - sub annual and annual statistics

Not relevant

8.5. Coherence - National Accounts

The Danish LCI results are compiled purely on the survey data, described in section 6.3.1. Data on Danish National Accounts are not applied in the compilations. Moreover Danish National Accounts do not apply the LCI results as a data source in their compilations, neither regarding annual nor quarterly figures on compensation of employees and employee’s hours worked.

Quarterly data on compensation of employees and in the National Accounts are primarily based on the Quarterly Working Time Accounts, which applies administrative tax records from Statistics Denmark’s e-Income Register on a monthly basis in the calculation of total compensation. Regarding hours actually worked in National Accounts, the main source is the Quarterly Working Time Accounts as well, which here mainly applies data from the same tax record source on hours paid; however adjusted with data on absence from mainly the annual Structure of Earnings Surveys in combination with the Quarterly Labour Force Survey to compile estimates on hours actually worked. This difference in source data naturally cause differences in annual growth rates in the LCI_TOT and National Accounts data on compensation of employees per hour worked, which is illustrated for Industry, Construction, Services and Public sector activities in charts 1 to 4 attached as an annex below.

Obviously there still remains some incoherence in the LCI series compared to the National Accounts figures. The relatively large differences for some special quarters still remaining systematically in all NACE aggregates are mainly to be explained by the fact that the Danish LCI growth rates are compiled on working day adjusted index series and as such not are affected by eastern and alike effects. In contrast to this the National Account series are very much affected by these varying patterns, as the calculated annual growth rates in the National Accounts figures are not working day adjusted. However, since Denmark has a permanent derogation on compiling not adjusted LCI series, it is quite difficult to draw any clear cut conclusions about the eventual remaining lack of coherence with the National Accounts data on compensation per hours worked. 



Annexes:
Coherence with National Accounts
8.6. Coherence - internal

Overall internal coherence is not feasible because the Danish LCI is compiled by combining two (three when taking the annual weights delivered into account) different data sources. The sources are 1) the quarterly main data reports, 2) the annual data on residual parts of other labour costs and 3) the Danish Structure of Earnings Survey in constructing the annual weights for the LCI_TOT, LCI_WAG, LCI_OTH and LCI_TXB.


9. Accessibility and clarity Top

The quarterly LCI figures on annual growth rates for the EU28 and the USA are nationally published in Nyt fra Danmarks Statistik on a quarterly basis The sources for these figures are the Eurostat Statistics Database and the U.S. Bureau of Labor Statistics.

9.1. Dissemination format - News release

Main aggregates were until the end of 2022 published on a quarterly basis in "Nyt fra Danmarks Statistik (Arbejdsomkostninger i EU og USA)". The News release has been suspended after that due to a prioritisation decision, made by the board of directors at Statistics Denmark, and as such there will be no further releases.

9.2. Dissemination format - Publications

Please refer to 9.1. above.

9.3. Dissemination format - online database

Please refer to Eurostat's database.

9.3.1. Data tables - consultations

Please refer to 9.3 above.

9.4. Dissemination format - microdata access

There is no access granted by Statistics Denmark for LCI microdata.

9.5. Dissemination format - other

Not relevant

9.6. Documentation on methodology

No further documentation besides this quality report.

9.7. Quality management - documentation

Statistics Denmark follows the recommendations on organisation and management of quality given in the Code of Practice for European Statistics (CoP) and the implementation guidelines given in the Quality Assurance Framework of the European Statistical System (QAF). A Working Group on Quality and a central quality assurance function have been established to continuously carry through control of products and processes.

9.7.1. Metadata completeness - rate

100 percent.

9.7.2. Metadata - consultations

Not relevant.


10. Cost and Burden Top

Although the Danish LCI is compiled on data reports from enterprises payroll systems, Statistics Denmark takes the point of view that the LCI is actually compiled on existing sources by reusing data, which are collected for the Danish National statistical system on earnings and labour costs. There is no figure on the response burden imposed on enterprises for the quarterly statistics specifically. The total burden imposed on enterprises due to quarterly and annually reports to the Danish statistics on earnings and labour costs is officially amounting to approximately 6.3 million DKK.


11. Confidentiality Top
11.1. Confidentiality - policy

Not relevant.

11.2. Confidentiality - data treatment

Not relevant


12. Comment Top

There are no supplementary documents besides this quality report.


Related metadata Top


Annexes Top
Questionnaire on COVID support measures 2020
Questionnaire on COVID support measures 2021