As reported by the Federal Statistical Office (Destatis), in the fourth quarter of 2007 employers in the industry and in the entire service sector paid a calendar-adjusted 1.1% more for one hour worked than in the same quarter a year earlier. The two main components of labour costs showed different trends: While the costs of gross wages and salaries were up 1.5%, non-wage costs were down 0.4%. Compared with the previous quarter, the costs of one hour worked increased a seasonally and calendar-adjusted 0.4%.
 
In 2007, labour costs in the industry and in the entire service sector increased a calendar-adjusted 0.9% on the previous year. The index of gross wages and salaries was up by 1.3%. By contrast, the index of non-wage costs decreased 0.5%. The reduction of employers’ contribution rates for unemployment insurance (from 3.25% in 2006 to 2.1% from 2007) more than offset the increase in employers’ contribution rates for statutory health insurance (from 6.6% to 7.0%) and for pension insurance (from 9.75% to 9.95%) in 2007.
 
At the European level, rates of labour cost change in the private sector of the economy are available for the third quarter of 2007. The private sector includes the industry and the market services.
According to those results, the costs of one hour worked in Germany was up a calendar-adjusted 0.7% compared with the third quarter of 2006. Following Malta (0.0%), Germany thus had the second lowest growth rate within the European Union. The third lowest growth rate was recorded for Finland (+1.9%), followed by Greece, Austria and Sweden (+2.5% each). The highest rate of labour cost change was observed for Latvia (+30.0%). In France (+3.2%), too, labour costs grew more strongly than in Germany. The average increase in the European Union (+3.7%) was markedly higher than in Germany.
 
For the third quarter of 2007, data are available for 24 of the 27 European Union member states. The rates of labour cost change in countries outside the euro area are measured in the relevant national currencies and thus are not currency-adjusted. Data for European comparisons are provided by the European Data Service (EDS) at www.eds-destatis.de .
 
The industry and the entire service sector cover the private sector of the economy and the non-market service branches. These include, among other things, the public administration and the areas of education and health.
 

For further information please contact:
Kerstin Jünemann,
tel: (+49-611) 75-3545,
E-mail: arbeitskosten@destatis.de