The increase in hourly labour costs in Croatia slowed down significantly in the second quarter of 2019, sliding below the European Union average of 3.1%, data released by Eurostat on Friday indicate.

Hourly labour costs in Croatia in Q2 increased by 2.3% compared to the same quarter last year. In Q1 they rose by 4.3%, Eurostat reported.

The cost of wages increased by 2.8% after a 4.9% increase in Q1.

The cost of contributions on wages decreased by 1% compared to a 0.8% increase in the previous quarter.

Broken down by economic activity, the greatest year-on-year increase in hourly labour costs was in the services sector, of 2.8%, while labour costs in industry increased by 1.7%.

Hourly labour costs in the construction sector were once again reduced, decreasing by 5.0% compared to Q2 2018. In Q1 2019 they decreased by 4.8%.

The cost of wages also increased the most in the services sector, by 3.3%, followed by the industrial sector, with an increase of 2.3%. The cost of wages in the construction sector decreased by 4.4%.

The construction sector recorded the greatest annual decrease in the cost of contributions on wages, of 8.5%, followed by the industrial sector (-2.2%), while the cost of contributions on wagesremained the same in the services sector.