There is still no convergence of hourly labour costs in the EU member states. These costs ranged from €4.90 to €42.50 across the EU member states in 2017, with the lowest cost being in Bulgaria and Romania and the highest in Denmark and Belgium according to the most recent figures from Eurostat published on Monday 9 April. Hourly labour costs are calculated for enterprises with 10 or more employees and exclude agriculture and public administration.
The member states with the lowest hourly labour costs were Bulgaria (€4.90 as opposed to €2.60 in 2008) and Romania (€6.30 as opposed to €4.20 in 2008), The highest costs were in Denmark (€42.50 as opposed to €34.60 in 2008) and Belgium (€39.60 as opposed to 32.90 in 2008).
Within the euro area, the largest increases were recorded in Lithuania (+9.0%), Estonia (+7.4%) and Latvia (+7.0%). For member states outside the euro area in 2017, the largest increase in hourly labour costs were observed in Romania (+17.1%) and Bulgaria (+12.0%).
Average hourly labour costs in the whole economy were estimated to be €26.80 in the European Union (EU) and €30.30 in the euro area. Hourly average labour costs in industry were €27.40 in the EU and €33.40 in the euro area. In services, they were €26.60 and €29.30, respectively.
The share of non-wage costs in total labour costs constituted by social contributions paid by employers was 24.0% in the EU and 25.9% in the euro area. It ranged from 6.7% in Malta to 32.8% in France.
These figures demonstrate that social convergence has not yet been achieved in the EU. It is a question causing concern to the member states and could become even more important in the next multi-annual financial framework, given the determination to encourage European level social convergence, such as through incentives (see EUROPE 11907). (Original version in French by Pascal Hansens)