Labour costs in Portugal grows almost twice the Eurozone average

  • ECO News
  • 17 March 2020

Labour costs have risen by 4.1%, almost double the average for the Eurozone, where the cost of labour has risen by 2.4%, according to Eurostat.

In the last three months of 2019, labour costs in the single currency area rose 2.4% year-on-year and in the European Union by 2.7%, significantly lower than in Portugal. Labour costs here rose 4.1%, almost double the Eurozone average, according to data released this Tuesday by the Statistical Office of the European Union.

“Hourly labour costs increased by 2.4% in the Eurozone and 2.7% in the European Union in the fourth quarter of 2019 compared to the same quarter of the previous year,” explains Eurostat, recalling that from July to September these costs had risen by 2.6% and 2.9% respectively. In other words, there was a slowdown in both cases at the end of the year.

The cost of labor includes expenses with salaries, but also noncommercial expenses. On the first point, in the fourth quarter, there was an increase of 2.3% in the Euro Zone and 2.7% in the EU. Non-paid costs grew by 2.4% in the single currency area and 2.6% in the EU bloc. In annual terms, the wage component increased by 2.6% in the euro area and 3% in the EU, while the non-wage component rose by 2.6% in both the euro area and the EU.

From October to December, Romania (12%) and Bulgaria (11.9%) recorded the highest increases in labour costs, while the least significant growth was recorded in Luxembourg (0.4%)

Portugal appears in the middle of the table, with a year-on-year increase of 4.1%, still significantly above the Euro Zone average. This figure reflects stability in relation to the previous quarter.