54/2003 - 12 May 2003

Employment in European businesses in 2000

Labour productivity in market services highest in Luxembourg, Sweden, Denmark and Germany

EU labour costs per employee 2.5 times higher in Chemicals than in Textiles

Which sectors are most important in terms of employment? And how much value-added do they generate? Which Businesses have the highest productivity? Answers to these and many more questions can be found in a publication¹ released today by Eurostat, the Statistical Office of the European Communities in Luxembourg.

The publication examines employment in the EU’s industrial and services sectors relating it to value-added, labour costs, labour productivity and investment. It also provides information on employment by size of enterprise and by region. In this way, the publication provides a snapshot of the structure of employment in the economy across the EU. The following examples illustrate the content of the publication.

Highest labour productivity of EU market services in Real estate and Rental activities

As measured by value-added per hour worked, labour productivity²in market services (Financial intermediation not included) in the EU in 2000 was 24 euro. Labour productivity was highest in Luxembourg (32 euro), in Sweden (31 euro), Germany and Denmark (both 29 euro) and lowest in Portugal (11 euro), Spain (15 euro) and Italy (18 euro).

At EU level, labour productivity was among the lowest of all services activities in 'Hotels & restaurants' (12 euro) followed by 'Retail trade' (16 euro) and 'Land transport' (20 euro). The highest values were registered by 'Real estate' (60 euro), 'Rental activities' (55 euro) and 'Water transport' (51 euro).

Germany was the Member State with the highest labour productivity in 8 of 14 services activities. High productivity was registered particularly in 'Air transport', 'Real estate activities' and in 'Computer & related activities'. Also noticeable the high labour productivity levels of Denmark in 'Water transport' services, of Austria and Belgium in 'Rental services' and of the UK in 'Computer & related activities'.

Labour productivity² in market services in EU Member States in 2000 (EUR)

	B	DK	D	E	F	IRL	I	L	NL	A	P	FIN	S	UK	EU
Sale & service of motor vehicles	22	24	33	14	20	20	14	27	25	24	10	24	25	25	22
Wholesale trade	32	33	36	18	31	31	22	42	35	33	14	35	36	33	29
Retail trade	15	19	19	10	20	14	11	19	18	18	6	21	22	18	16
Distributive trades	22	26	26	13	24	20	15	29	26	24	9	27	28	24	21
Hotels & restaurants	10	14	11	9	15	9	11	15	19	13	5	17	18	14	12
Land transport, pipelines	24	23	22	15	22	14	18	28	24	24	9	22	23	22	20
Water transport	41	99	68	29	27	:	43	:	59	39	22	36	35	74	51
Air transport	26	37	132	36	35	42	30	72	59	35	27	42	45	61	42
Travel agencies	37	29	35	28	34	22	26	35	34	33	25	28	32	35	32
Post & telecommunications	40	38	41	36	36	38	46	133	40	32	48	36	48	42	41
Transport & communications	31	34	31	22	29	27	27	56	34	28	21	28	33	34	30
Real estate activities	48	72	110	49	45	19	24	56	105	75	23	62	93	48	60
Rental activities	103	42	90	30	72	23	29	112	44	128	63	50	44	45	55
Computer & related activities	28	32	42	21	31	25	22	31	32	32	17	27	31	37	32
R&D	46	28	28	20	32	26	26	44	27	35	12	18	25	19	25
Other business activities	18	25	29	13	24	19	19	25	18	23	10	21	24	29	23
Business services	22	33	40	18	29	21	20	30	25	32	14	27	36	32	29
Total market services	23	29	29	15	26	19	18	32	27	25	11	26	31	27	24

Note: EL data not available; D: Distributive trades, hotels and restaurants and air transport 1999; IRL: distributive trades 1999, hotels and restaurants, transport, communications and business services 1998, air transport includes water transport; L : wholesale trade partly 1999, other business activities partly 1998; NL: travel agencies, real estate activities and partly of other business activities 1998; S: other business activities 1999.

: Data not available

Labour costs were 35 000 euros per employee in EU manufacturing

In 2000, for the EU as a whole, labour costs per employee³ were 35 000 euros on average for the manufacturing sector. However they varied from one industry to another. Average labour costs were lower in the more basic industries: in 'Textiles and clothing', labour costs per employee were 21 000 euros and in 'Food, drink & tobacco' industry 28 000 euros. On the other hand, 'Chemicals and fuel' recorded the highest value (51 000 euros), followed by 'Transport equipment' manufacturing (44 000 euros).

These differences could be explained by the relative skill levels of those employed in the different industries, or, more precisely, the fact that proportionately more people with relatively high levels of educational attainment and skills were employed in 'Engineering' or 'Chemicals' than in 'Basic manufacturing'.

Among Member States, Belgium, Luxembourg, Sweden (42 000 euros each) and Germany (41 000 euros), showed the highest labour costs per employee for the manufacturing sector in 2000. Portugal (12 000 euros), Spain (25 000 euros), Ireland (28 000 euros) and Italy (29 000 euros) registered the lowest costs.

Labour costs³ per employeectivity in EU Manufacturing in 2000 ('000 EUR)

	B	DK	D	E	F	IRL	I	L	NL	A	P	FIN	S	UK	EU
Food, drink & tobacco	34	32	25	22	29	28	28	27	34	31	12	31	38	31	28
Textiles, clothing	30	32	29	16	26	18	21	55	32	28	8	26	33	23	21
Metals & metal products	43	34	38	25	34	26	27	45	36	39	12	35	38	36	33
Other manufacturing	39	32	36	23	34	30	27	44	36	36	12	36	39	34	32
Basic manufacturing	37	33	33	22	32	28	26	42	35	35	11	34	38	32	30
Chemicals & fuel	61	52	56	38	53	38	45	43	52	54	26	41	53	51	51
Machinery & equipment	43	38	45	27	38	25	32	46	38	41	16	38	43	39	39
Electrical & optical equipment	47	35	46	30	44	28	31	40	53	43	15	38	47	40	41
Transport equipment	45	37	52	32	43	29	33	31	34	42	16	33	44	44	44
Engineering	45	36	48	30	42	27	32	43	43	42	17	37	45	41	41
Total manufacturing	42	35	41	25	37	28	29	42	38	38	12	36	42	37	35

Note: EL: no data available; DK: clothing 1999, chemicals and partly of other manufacturing estimated; IRL: 1999, fuels and partly other manufacturing estimated based on EU figures; NL: other manufacturing: partly 1999 data.

"Employment in the market economy in the European Union – an analysis of the Structural Business Statistics", data for 2000, 66 pages, ISBN 92-94-4832-6, EUR 20 (excl. VAT), only available in English.

The labour productivity is calculated for each activity by dividing total value-added, measured at factor cost (ie excluding indirect taxes, like valued added tax, and subsidies), by total hours worked by those employed. Value added represents the gross income generated in a particular enterprise -or sector of activity- ie the difference between total income from sales and other activities less the cost of goods and services purchased. It covers the wages and salaries of the people employed plus other labour costs, the capital employed, that is the interest costs on borrowing and the rent of business premises, and a return on the deployment of capital, which is the profit made by the enterprise.

Labour costs per employee or average labour costs includes wages and salaries and non-wage labour costs, that is social contributions paid by employers. Costs of training, other than those for apprentices, and direct subsidies are not included.

Eurostat Press Office:

Philippe BAUTIER, Tim ALLEN,

Louise Corselli,

Aurora ORTEGA SANCHEZ

BECH Building

L-2920 Luxembourg

Tel: +352-4301-33 444

Fax: +352-4301-35 349

eurostat-pressoffice@cec.eu.int

For further information:

Pekka ALAJAASKO

Tel: +352-4301-34044

Fax: +352-4301-32600

pekka.alajaasko@cec.eu.int

Eurostat news releases on the Internet: http://europa.eu.int/comm/eurostat/

Eurostat Data Shop Network:

http://europa.eu.int/comm/eurostat/

Data Shop Services / List of Data Shops