Malta registers third lowest increase in hourly labour costs in Q3

Malta, along with Finland, has registered the third lowest increase in hourly labour costs in the third quarter of this year, according to data by Eurostat. The 1.6% increase registered by Malta was lower than the average increases registered both in the euro area and the EU 28.

In the third quarter of 2018, the highest annual increases in hourly labour costs for the whole economy were registered in Romania (+13.9%),

Latvia

Lithuania

(+13.2%) and

(+10.7%), while the lowest annual increases in hourly labour costs were recorded in Belgium (+1.2%), Portugal (+1.5%), Malta and Finland (both at +1.6%).

Hourly labour costs rose by 2.5% in the euro area (EA19) and by 2.7% in the EU28 in the third quarter of 2018, compared with the same quarter of the previous year. In the second quarter of 2018, hourly labour costs increased by 2.3% and 2.7% respectively.

The two main components of labour costs are wages & salaries and non-wage costs.

In the euro area, the cost of wages & salaries per hour worked grew by 2.4% and the non-wage component by 3.0% in the third quarter of 2018 compared with the same quarter of the previous year. In the second quarter of 2018, the annual changes were +2.1% and +3.0% respectively.

In the EU28, the costs of hourly wages & salaries rose by 2.7% and the non-wage component rose by 2.4% in the third quarter of 2018. In the second quarter of 2018, annual changes were +2.8% and +2.7% respectively.

In the third quarter of 2018 compared with the same quarter of the previous year, hourly labour costs in the euro area rose by 2.2% in industry, by 2.9% in construction and in services and by 2.1% in the (mainly) nonbusiness economy.

In the EU28, labour costs per hour grew by 2.6% in industry, by 3.3% in construction, by 2.8% in services and by 2.4% in the (mainly) non-business economy.