Hourly labor costs rose by 6.2% in second quarter in Latvia

Seasonally and calendar non-adjusted data of the Central Statistical Bureau (CSB) published September 17 show that, compared to the second quarter of 2019, in the second quarter of 2020 hourly labor costs increased by 6.2 % or 60 cents, reaching EUR 10.27.

Seasonally adjusted data comprised 4.0 %.

Rise in hourly labor costs recorded in almost all economic activities

Compared to the second quarter of 2019, seasonally non-adjusted data on the second quarter of 2020 show that hourly labor costs increased in almost all economic activities, except of accommodation and food service activities and real estate activities, where during a year they fell by 4.0 % and 3.1 %, respectively. The sharpest growth was recorded in arts, entertainment and recreation (of 16.5 %), other service activities (15.8 %), construction activities (8.1 %), professional, scientific and technical activities (7.9 %) as well as public administration (7.5 %).

Hourly labor costs are influenced not only by changes in structure of wages, salaries and other labor costs, but also by the fluctuations in the number of hours worked and employees over the year.

Affected by the emergency situation declared due to COVID-19 changes in hourly labor costs mostly left impact on the drop of hours worked because of the downtime, dismissed employees and change in workloads, as well as due to rise of bonuses and premiums during the crisis.

The smallest increase in hourly labor costs was recorded in transportation and storage (of 0.1 %) and financial and insurance activities (0.7 %).

Highest labor costs still recorded in financial and insurance activities, while lowest in accommodation and food service activities.

In the second quarter of 2020, the highest hourly labor costs were registered in financial and insurance activities (EUR 19.10), information and communication (EUR 16.07), electricity, gas, steam and air conditioning supply (EUR 14.00), public administration and defense, compulsory social security (EUR 12.64), as well as professional, scientific and technical activities (EUR 11.42).

The lowest hourly labor costs were recorded in accommodation and food service activities (EUR 6.61), real estate activities (EUR 8.09), other service activities (EUR 8.23), education (EUR 8.69), wholesale, retail sale; repair of motor vehicles and motorcycles (EUR 8.82), as well as administrative and support service activities (EUR 8.91).

Changes in hourly labor costs by main kind of economic activity
(seasonally non-adjusted data; EUR)

 

Hourly labor costs

of which wages and salaries

2019

Q2

2020

Q2

changes, %

2019

Q2

2020

Q2

changes, %

Total (B–S)

9.67

10.27

6.2

7.64

8.16

6.8

Mining and quarrying (B)

9.79

10.09

3.1

7.78

8.06

3.5

Manufacturing (C)

9.11

9.67

6.1

7.19

7.68

6.9

Electricity, gas, steam and air conditioning supply (D)

13.86

14.00

1.0

10.53

10.50

- 0.2

Water supply, sewerage, waste management and remediation activities (E)

9.90

10.17

2.7

7.79

8.03

3.0

Construction (F)

9.06

9.80

8.1

7.22

7.86

8.8

Wholesale, retail sale;

repair of motor vehicles and motorcycles (G)

8.38

8.82

5.3

6.65

7.03

5.7

Transportation and storage (H)

9.85

9.86

0.1

7.70

7.66

- 0.4

 Accommodation and food service activities (I)

6.89

6.61

- 4.0

5.47

5.24

- 4.1

Information and communication (J)

15.71

16.07

2.3

12.43

12.85

3.4

Financial and insurance activities (K)

18.96

19.10

0.7

14.82

15.06

1.6

Real estate activities (L)

8.35

8.09

- 3.1

6.65

6.50

- 2.3

Professional, scientific and technical activities (M)

10.59

11.42

7.9

8.50

9.24

8.7

Administrative and support service activities (N)

8.69

8.91

2.6

6.93

7.11

2.6

Public administration and defence; compulsory social security (O)

11.75

12.64

7.5

9.24

10.00

8.2

Education (P)

8.23

8.69

5.6

6.55

6.98

6.5

Human health and social work activities (Q)

9.97

10.60

6.4

7.89

8.46

7.2

Arts, entertainment and recreation (R)

7.87

9.17

16.5

6.28

7.38

17.6

Other service activities (S)

7.11

8.23

15.8

5.77

6.74

16.7

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