In the first quarter, the euro area saw a notable rise in hourly labor costs, according to data released by Eurostat on Monday.
The yearly growth rate for hourly labor costs accelerated to 5.1 percent, compared to a 3.4 percent increase in the fourth quarter of 2023.
Both major components of labor costs, wages and salaries, as well as non-wage costs, experienced growth. Wages and salaries rose by 5.3 percent, while non-wage costs increased by 4.5 percent.
In the services sector, hourly labor costs escalated by 5.0 percent, while the construction sector saw a 5.2 percent rise. In the industrial sector, labor costs went up by 4.8 percent.
Across the European Union, data indicated a 5.5 percent increase in hourly labor costs, following a 4.1 percent increase in the previous quarter.
Romania, Bulgaria, and Croatia recorded the highest increases in hourly wage costs across the entire economy.
