Hourly la­bor costs up as pub­lic hir­ings rise

Euro­stat shows a 4.5 pct hike in wage ex­pen­di­ture in 2016 and a drop in the pri­vate sec­tor due to sack­ings

Kathimerini English - - Front Page -

Av­er­age hourly la­bor costs and hir­ings in the pub­lic sec­tor rose in 2016, com­pared to the pri­vate sec­tor, which saw a drop, ac­cord­ing to the lat­est data from Euro­stat.

The Euro­pean statis­tics agency pro­duced fig­ures show­ing that av­er­age hourly la­bor costs in the pub­lic sec­tor were up by 4.5 per­cent while cor­re­spond­ing costs in the pri­vate sec­tor suf­fered a 3.1 per­cent slide, mainly due to mass sack­ings.

Pub­lic ad­min­is­tra­tion sources told Kathimerini that the in­crease in hourly la­bor costs in the Greek pub­lic sec­tor was due to more hir­ings. Fac­tor­ing in re­tire­ments, the Greek pub­lic sec­tor grew by 6,803 peo­ple while the pri­vate sec­tor shrank by 37,667 in Novem­ber alone, when 157,385 hir­ings were regis­tered as op­posed to 195,052 peo­ple leav­ing – 66,978 of them were vol­un­tary.

The bal­ance for 2016 across both sec­tors was positive, with 1,987,838 hir­ings com­pared to 1,862,710 peo­ple leav­ing their jobs.

The is­sue of hir­ings in the pub­lic sec­tor has been fe­ro­ciously de­bated in Par­lia­ment, with op­po­si­tion New Democ­racy ac­cus­ing the gov­ern­ment of giv­ing jobs to its “own peo­ple.”

Over­all, fac­tor­ing in both the pri­vate and pub­lic sec­tors, la­bor costs in Greece for 2016 were up by 0.5 per­cent.

La­bor costs are cal­cu­lated based on costs for wages and salaries plus non-wage costs such as em­ploy­ers’ so­cial con­tri­bu­tions.

Euro­stat also said the over­all hourly la­bor costs, in both pri­vate and state sec­tors, were also up in other Euro­pean Union coun­tries and the euro­zone.

More specif­i­cally, in the third quar­ter of 2016, the to­tal hourly la­bor cost was up by 1.5 per­cent in euro- zone coun­tries, while the in­crease in the sec­ond quar­ter was at 1 per­cent.

In the EU, there was a rise of 1.9 per­cent in the third quar­ter, com­pared to 1.4 per­cent in the sec­ond.

Bro­ken down, the rise in the euro­zone is at­trib­uted to a 1.6 per­cent in­crease in wage costs and a 1.2 per­cent spike in non-wage costs. In the EU, the in­creases were at 2 per­cent and 1.5 per­cent re­spec­tively.

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