Hourly labour costs increased by 5.0% in Cyprus in the first quarter of 2023 compared with the same quarter of the previous year (while also increasing by 5.0% in the eurozone and by 5.3 % in the EU), according to figures published by Eurostat, the statistical office of the European Union.

Trends differ when it comes to the two main components of labour costs: wages and salaries, and non-wage costs.

In Cyprus, wages and salaries per hour worked increased by 5.2%, while the non-wage component rose by 4.3% in the first quarter of 2023, compared with the same quarter of the previous year.

In the eurozone, wages and salaries increased by 4.6%, while the non-wage component rose by 6.2% during the same period. In the EU, hourly wages and salaries increased by 5.0% and the non-wage component by 6.1%.

By economic activity, hourly labour cost in the eurozone rose by 4.1% in the mainly non-business economy and by 4.9% in the business economy: more specifically by 4.9% in industry, by 4.1% in construction and by 5.5% in services.

In the EU, hourly labour cost grew by 4.4% in the mainly non-business economy and by 5.5% in the business economy: more specifically by 5.5% in industry, by 4.4% in construction and by 5.8% in services.

In Cyprus, hourly labour cost grew by 5.2% in the mainly non-business economy and by 5.1% in the business economy: more specifically by 5.1% in industry, by 5.2% in construction and by 4.2% in services.

The economic activities that recorded the highest annual increases in hourly wage costs in the EU, were NACE Rev. 2 categories 'electricity, gas, steam and air conditioning supply' (+9.8%) and 'mining and quarrying' (+7.8%). The lowest annual increase was recorded in '[ublic administration and defence; compulsory social security' (+2.7%) and 'education' (+3.5%).

The economic activities with the biggest annual increases in the non-wage component in the EU were 'accommodation and food service activities' (+18.6%), 'arts, entertainment and recreation' (+13.9%) and 'mining and quarrying' (+10.4%).

By member state, the highest increases in hourly wage costs for the whole economy were recorded in Bulgaria (+15.7%), Romania (+14.3%) and Lithuania (+13.2%).

Four more EU Member States recorded an increase above 10%, namely: Estonia (+12.0%), Croatia (+11.3%), Poland (+10.7%) and Belgium (+10.1%).

Source: Cyprus News Agency