Irish hourly labour costs fell slightly in 2014

Labour costs in Ireland fell in 2014, new estimates from Eurostat have shown, making the country one of seven in the EU to show a downward trend last year.

However, costs here were still among the top 10 in the EU, behind Denmark, Belgium, Sweden and Luxembourg.

Overall, Irish hourly labour costs showed a decline of 0.2 per cent compared with 2013, at €29.80. The euro area average is €29, with the EU average at €24.6.

The lowest hourly labour costs in the EU last year were seen in Bulgaria, where the figure stands at €3.8; Romania at €4.6; and Lithuania at €6.5.

Labour costs include wages, employers social contribution and other factors, with Irish figures showing a lower proportion of non-wage related costs than many of the other higher cost countries. Employers’ social contributions accounted for 13.5 per cent of the hourly total, compared with 24.4 per cent across the EU. France and Sweden topped the table regarding non-wage costs, with 33.1 per cent and 31.6 per cent respectively.

Looking at the different sectors, Ireland’s non-business sector, which includes education, health and other services but excludes public administration, recorded the highest hourly wage costs at €33.8 per hour. Industry came in at €32.1, the business economy at €28.4 and services at €27.2. Construction has a labour cost of €26.7 per hour.