Eurostat Reports Euro Area Hourly Labour Costs Rose 3.6% in Q2 2025, EU Average Higher at 4.0%

Hourly labour costs in the euro area climbed by 3.6 per cent in the second quarter of 2025 compared with the same period a year earlier, according to figures released by Eurostat, the statistical office of the European Union. Across the EU as a whole, the increase was slightly higher, coming in at 4.0 per cent year on year.

Eurostat explained that labour costs are comprised of two principal components—wages and salaries alongside non-wage costs. Within the euro area, hourly wages and salaries rose by 3.7 per cent, while non-wage costs grew by 3.4 per cent in the second quarter compared with the same period in 2024. In the wider EU, wages and salaries increased by 4.1 per cent, while non-wage costs advanced by 3.8 per cent.

Breaking the data down by sector, Eurostat reported that in the euro area, hourly labour costs increased by 2.7 per cent in the mainly non-business economy and by 4.0 per cent in the business economy. Within the business economy, industry recorded a rise of 3.3 per cent, construction saw a 4.7 per cent increase, and services registered a 4.3 per cent rise.

Across the EU, the non-business economy recorded a 3.1 per cent increase, while the business economy experienced stronger growth of 4.4 per cent. In industry, hourly costs were up 3.9 per cent, while construction rose by 4.8 per cent and services by 4.6 per cent.

Looking at labour costs by activity, Eurostat highlighted that the highest annual increase in hourly wage costs in the euro area was seen in professional, scientific and technical activities, which jumped by 8.9 per cent. This was followed by mining and quarrying at 6.7 per cent. On the opposite end, the lowest annual increase in wages was recorded in real estate activities, which rose by just 1.6 per cent.

Non-wage costs showed a similar pattern. The largest increases were recorded in professional, scientific and technical activities at 7.3 per cent, followed by mining and quarrying at 6.6 per cent. The smallest rise was seen in administrative and support service activities, which posted an increase of 1.8 per cent.

When examining hourly wage costs by country, Bulgaria stood out with the highest increase at 13.4 per cent, followed by Hungary at 11.0 per cent. Other EU Member States recording double-digit growth included Romania at 10.4 per cent, Estonia at 10.3 per cent, and Greece at 10.1 per cent. The lowest annual increases were reported in France at 1.4 per cent, Denmark at 1.5 per cent, and Malta at 1.9 per cent.

By fLEXI tEAM