In the first quarter of 2023, Croatia was among the EU countries with the highest growth of nominal hourly labour costs, which stabilised at European level close to the highest level since Eurostat has been tracking this data.

In Q1 2023, hourly labour costs rose by 5% in the euro area and by 5.3% in the EU, compared with the same quarter of the previous year. At the end of 2022, they rose by 5.6% in the euro area, the highest increase since early 2010, and by 5.7% in the EU, also the most since early 2010.

In the euro area, wages per hour worked increased by 4.6% while the non-wage component rose by 6.2% in the first quarter of 2023, compared with the same quarter of the previous year. In the EU, hourly wages increased by 5% and the non-wage component by 6.1%.

The highest increases in nominal hourly labour costs were registered in the services sector, of 5.5% in the euro area and 5.8% in the EU.

In the first quarter of 2023, compared with the same quarter of the previous year, the highest increases in nominal hourly labour costs were recorded in Bulgaria (+15.1%), Romania (+14.3%) and Lithuania (+13.7%).

In Croatia, the annual growth in Q1 2023 was 11.4%, while in Q4 2022 it was 9.2%

Hourly wage costs in Croatia in Q1 2023 increased by 11.3% on the year, after increasing by 9.2% in Q4 2022, while the non-wage component rose by 11.8% in Q1 2023, after a 9% growth in Q4 2022.