The average hourly labor cost in the economy was calculated, for 2023, at 31.8 euros in the EU and 35.6 euros in the eurozone countries, compared to 30.2 euros and 34.0 euros, respectively, in 2022, according to data that Eurostat published today.
Greece, with an hourly labor cost of 15.7 euros, ranks in the zone of European countries with prices between 15 and 20 euros, which is the second “cheapest” zone in the European ranking. Our country ranks 23rd in the EU, far below the European average of 24 euros.
At the bottom is Bulgaria, at the top is Luxembourg
Average hourly labor costs cover a wide range between EU countries.
In the first and most “expensive” zone of countries with hourly labor costs above 45 euros are Luxembourg (53.9 euros), Norway (51.9 euros), Iceland (49.7 euros) and Belgium (47, 1 euro), while Bulgaria (9.3 euro), Romania (11 euro) and Hungary (12.8 euro) are in the lower zone of countries with costs under 15 euro.
Hourly labor costs in industry were €32.2 in the EU and €38.0 in the euro area. In construction they were €28.5 and €31.9 respectively. In services, hourly labor costs ranged between €31.8 in the EU and €34.8 in the euro area. In the mainly non-business economy (excluding public administration) it was €32.4 and €35.7 respectively.
The two main components of labor costs are wages and non-wage costs (eg employer social security contributions). The share of non-wage costs in total labor costs for the economy as a whole was 24.7% in the EU and 25.5% in the euro area. The lowest shares of non-wage costs were recorded in Malta (1.4%), Romania (5.0%) and Lithuania (5.4%) and the highest in Sweden (32.2%) and France (31, 9%).
The increase on an annual basis
In 2023 compared to 2022, hourly labor costs at the level of the total economy, expressed in euros, increased by 5.3% in the EU and by 4.8% in the euro area.
Within the euro area, hourly labor costs increased in all countries. The biggest increases were recorded in Croatia (+14.2%), Lithuania (+12.4%) and Estonia (+11.7%).
For non-euro area EU countries, hourly labor costs expressed in national currency increased in 2023 in all countries, with the largest increases recorded in Hungary (+17.0%), Romania (+16.5 %), Bulgaria (+14.0%) and Poland (+12.4%). They grew less in Denmark (+2.7%).
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