FX.co ★ Euro Area Labor Costs Growth Eases to 3.2% in Q1

Hourly labor costs in the Euro Area rose by 3.2% year-on-year in Q1 2026, easing slightly from a 3.3% increase in Q4 2025 and coming in just below the preliminary estimate of 3.3%. Within this, wage costs accelerated to 3.4% from 3.0% in Q4 2025, while non-wage costs grew much more slowly, at 2.9% compared with 4.3% in the previous quarter.