Total hourly labour costs in the euro area (EA15) rose by 2.7% in nominal terms in the year up to the second quarter of 2008, compared with 3.5% for the previous quarter2. In the EU27, the annual rise was 3.4% up to the second quarter of 2008, compared with 4.4% for the previous quarter.
The two main components of labour costs are wages & salaries and non-wage costs. In the euro area, wages & salaries grew by 2.8% in the year up to the second quarter of 2008, and non-wage costs by 2.2%, compared with 3.7% and 2.7% respectively for the first quarter of 2008. In the EU27, wages & salaries rose by 3.6% and the non-wage component by 2.6%. For the previous quarter the corresponding rates were 4.7% and 3.3%.
The breakdown by economic activity shows that in the euro area hourly labour costs rose at an annual rate of 3.0% in industry, 3.8% in construction and 2.3% in services up to the second quarter of 2008. In the EU27, labour costs grew by 3.8% in industry, 4.6% in construction and 3.0% in services.
These figures come from Eurostat, the Statistical Office of the European Communities.

Member States
Among the Member States for which data are available for the second quarter of 2008 the smallest annual increase in hourly labour cost was observed in Germany (0.7%). The highest annual rises were registered in Latvia (24.8%) and Romania (23.0%).