Croatia among EU states with highest growth of nominal hourly labour costs

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.