European Labour Cost Index (LCI)

Services sector

Within the services sector, the largest increase was observed in section J - Information and Communication. Here, the total index grew by 8.2% (8.1% wages and salaries, 8.5% indirect labour costs). This increase was caused by a rise in labour costs (+6.4%) and moderate decrease in the number of hours worked (-1.7%). In section H – transportation and storage the same opposite trend in labour costs (+1.1%) and associated hours worked (-6.2%) occurred and led to an index increased of 7.7%. In section N – administrative and support service activities the index rose by 7.6% due to an decrease in number of hours worked (-1.7%) and an increase in labour costs (+1.1%). Within the service sector only in section K –financial and insurance activities a negative trend (-1.3%) was observed as labour costs increased (2.7%) less than the hours worked (4.1%).

Manufacturing sector

Within the manufacturing sector, the highest increase of the LCI was recorded in section B – mining and quarrying (4.0%). This rise was caused by a substantial decline in hours worked (-15.7%) combined with almost stable labour costs (+0.3%). In section C – manufacturing a decrease in the number of hours worked (-4.3%) and rising labour costs (+4.6%) led to an increase by 2.3%. In section E - water supply; sewerage, waste management and remediation activities (+1.7%) and section F – construction (+0.5%) the index increased slightly. Within the manufacturing sector only in section D – electricity, gas, steam and air conditioning a negative trend (-0.4%) was observed as labour costs increased moderately (2.8%) whereas the hours leaped (13.9%).

Index excluding bonuses

The working day adjusted index excluding bonuses grew in the manufacturing sector by 1.8% compared to the previous year’s quarter. Thus, it increased not as much as the index including bonuses (1.7%).

According to Regulation (EC) No 1737/2005, these bonuses (D.11112) are defined as payments which are not paid in every remuneration period (e.g. 13th and 14th month pays, exceptional length-of-service awards) and voluntary severance pays (e.g. golden handshakes).

Sections O to S of ÖNACE 2008

In these sections, the unadjusted index went up relative to the previous year’s figure by 5.5% (gross wages and salaries by 5.5%, indirect labour costs by 5.6%, each per hour worked).

Whole observed economy

The unadjusted index of the whole observed economy (ÖNACE 2008 sections B to S) increased by +4.5% in the fourth quarter 2011 compared to the previous year’s figure (gross wages and salaries by 4.6%, indirect labour costs by 4.3%, per hour worked).

For sections B to S and O to S of ÖNACE 2008 only unadjusted series are available, because working day and seasonal adjustment requires a certain number of observations (quarters). An initial adjustment is expected with the publication of the first quarter of 2013.

Please consult our German website for tables containing further information.