Increase in labor costs in EU and euro zone slow down in Q3 2022


The increase in hourly labor costs in the European Union and the euro zone slowed down in Q3 2022 year-on-year, while in Croatia the increase further accelerated, remaining above the European average, according to the latest Eurostat report cited by the state news platform Hina.

In the 27-member EU, the nominal hourly labor costs increased by 3.4 percent in Q3 2022 compared with the same period of 2021. In Q2 2022, they had increased by 4.2 percent. In the euro zone the nominal hourly labor costs increased by 2.9 percent in Q3 2022, following an increase of 3.8 percent in Q2 2022.

Non-wage costs such as social contributions rose by 5.3 percent in Q3 2022.

In the EU, the largest increases in wage costs in the period from July to September this year were recorded in Hungary (+16.6 percent) and Bulgaria (+16.3 percent). Wage costs decreased only in Germany (-1.5 percent) and Malta (-0.3 percent).

In Croatia, the nominal hourly labor cost jumped by 8.6 percent in Q3 2022, which is a larger increase than previously seen in Q2 2022, when they had increased by 7.9 percent year-on-year.

Hina did not offer an explanation for these increases.