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Sunday 22.04.2018 | Name days: Armanda, Armands
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Hourly labour costs in Latvia grew 7.3% in 2017

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCompared to Q4 2016, in Q4 2017 hourly labour costs rose by 54 cents or 7.3 %, reaching EUR 8.02. Seasonally adjusted data show identical changes – rise of 7.3 %.

Seasonally non-adjusted data show that, compared to Q4 2016, in Q4 2017 hourly labour costs increased in almost all sectors, except for other service activities (activities of public, political and other organisations, repair of computers and personal and household goods, washing and (dry-)cleaning, hairdressing and other beauty treatment, funeral and related activities) where a decline of 10.3 % was recorded, according to seasonally non-adjusted data from the Central Statistical Bureau of Latvia.

The sharpest rise in hourly labour costs was recorded in water supply; sewerage, waste management and remediation activities (of 11.0 %), professional, scientific and technical activities (legal activities, accounting, bookkeeping and auditing activities, advertising and market research, architectural and engineering activities, business and other management consultancy activities, architectural and engineering activities, scientific research and development, etc.) (10.8 %), energy sector as well as accommodation and food service activities (10.4 % in each), and public administration and defence, compulsory social security (10.0 %).

Hourly labour costs are influenced not only by changes in wages, salaries and other labour costs, but also by fluctuations in number of hours worked over the year. In all sectors indicating sharper hourly labour cost rise in Q4 2017, greater influence was exerted by the increase in regular wages and salaries and decline in the number of hours worked.

Compared to Q4 2016, in Q4 previous year there were less working days, moreover number of hours worked reduced also because of the dismissed employees (slight increase – of 0.8 % – in the employee number was recorded only in public administration and defence). Sharp rise in water supply; sewerage, waste management and remediation activities, as well as energy sector was also affected by the growth of employers’ voluntary social security contributions (additional pension insurance contributions, health and life insurance contributions, etc.) and compensations and benefits paid to the redundant workers.

The lowest increase in hourly labour costs was registered in real estate activities and administrative and support service activities – of 1.6 % and 2.1 %, respectively. In these sectors, upturn was observed in both wages and salaries and hours worked. In its turn, the sharp indicator decline in other service activities was affected by the decline of wage and salary fund along with the dismissed employees, whereas the number of hours worked went up.

In Q4 2017, the highest hourly labour costs were registered in financial and insurance activities sector (EUR 16.37), information and communication (EUR 12.79), energy sector (EUR 11.86), public administration and defence (EUR 10.68), and mining and quarrying (EUR 9.98). In its turn, the lowest hourly labour costs were recorded in other service activities (EUR 5.39), accommodation and food service activities (EUR 5.30), real estate activities (EUR 6.53), arts, entertainment and recreation (EUR 6.57), administrative and support service activities (EUR 6.77), as well as education (EUR 6.61).


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