Hourly labor costs in the Euro Area increased by 3.2% year-on-year in Q1 2026, after a 3.3% rise in Q4 and compared with preliminary estimates of 3.3%. Wage growth accelerated (3.4% vs 3% in Q4 2025) but non-wage costs rose at a much slower pace (2.9% vs 4.3%). Among major economies, growth slowed in France (1.8% vs 2.1%) and the Netherlands (3.6% vs 4.8%), held steady in Germany (3.2%), but accelerated in Spain (5.1% vs 4%) and Italy (2.9% vs 2.5%). source: EUROSTAT

Labour Costs In the Euro Area decreased to 116.20 points in the first quarter of 2026 from 127.10 points in the fourth quarter of 2025. Labour Costs in Euro Area averaged 95.99 points from 2009 until 2026, reaching an all time high of 127.10 points in the fourth quarter of 2025 and a record low of 75.70 points in the first quarter of 2009. This page provides the latest reported value for - Euro Area Labour Costs - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Euro Area Labour Costs - data, historical chart, forecasts and calendar of releases - was last updated on June of 2026.

Labour Costs In the Euro Area decreased to 116.20 points in the first quarter of 2026 from 127.10 points in the fourth quarter of 2025. Labour Costs in Euro Area is expected to be 128.19 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Labour Costs is projected to trend around 134.19 points in 2027 and 137.27 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-21 09:00 AM
Labour Cost Index YoY Flash
Q1 3.3% 3.3% 3.0%
2026-06-16 09:00 AM
Labour Cost Index YoY Final
Q1 3.2% 3.3% 3.3% 3.3%


Related Last Previous Unit Reference
Employment Change 0.10 0.20 percent Mar 2026
Full Time Employment 126899.40 127645.30 Thousand Mar 2026
Labor Force Participation Rate 75.50 75.60 percent Mar 2026
Labour Cost Index YoY 116.20 127.10 points Mar 2026
Long Term Unemployment Rate 2.00 2.00 percent Mar 2026
Part Time Employment 32170.10 32259.40 Thousand Mar 2026
Population 351.64 350.36 Million Dec 2025
Productivity 104.24 104.22 points Mar 2026
Unemployed Persons 11075.00 11159.00 Thousand Apr 2026
Unemployment Rate 6.30 6.30 percent Apr 2026
Wage Growth YoY 3.40 3.10 percent Mar 2026
Wages 2652.00 2642.00 EUR/Month Dec 2025
Youth Unemployment Rate 14.70 15.10 percent Apr 2026


Euro Area Labour Costs
The Labour Cost Index in the Euro Area is a short-term indicator showing the development of hourly labour costs incurred by employers, in nominal terms, that is without adjusting for price developments. It is calculated dividing the labour cost in national currency by the number of hours worked. The quarterly changes in hourly employers’ costs are measured for total labour costs and its main components: wages and salaries; and non-wage costs (labour costs other than wages and salaries). Total labour costs (TOT) cover wage and non-wage costs less subsidies. They do not include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc.
Actual Previous Highest Lowest Dates Unit Frequency
116.20 127.10 127.10 75.70 2009 - 2026 points Quarterly
2020=100, WDA

News Stream
Euro Area Labor Costs Growth Eases to 3.2% in Q1
Hourly labor costs in the Euro Area increased by 3.2% year-on-year in Q1 2026, after a 3.3% rise in Q4 and compared with preliminary estimates of 3.3%. Wage growth accelerated (3.4% vs 3% in Q4 2025) but non-wage costs rose at a much slower pace (2.9% vs 4.3%). Among major economies, growth slowed in France (1.8% vs 2.1%) and the Netherlands (3.6% vs 4.8%), held steady in Germany (3.2%), but accelerated in Spain (5.1% vs 4%) and Italy (2.9% vs 2.5%).
2026-06-16
Euro Area Labor Costs Growth Eases to 3.3% in Q4
Hourly labor costs in the Euro Area rose 3.3% year-over-year in Q4 2025, slowing slightly from an upwardly revised 3.4% in Q3. Wages and salaries grew 3.0%, down from 3.2%, while non-wage costs jumped 4.4%, up from 3.9%. By sector, labor costs climbed 3.5% in the non-business economy and 3.2% in the business economy, with industry (+2.5%), construction (+4.0%), and services (+3.4%) showing varied trends. Among major economies, growth slowed in Germany (3.2% vs. 4.3%) and the Netherlands (4.8% vs. 5.1%), held steady in France (1.7%), but accelerated in Spain (3.9% vs. 2.0%) and Italy (2.6% vs. 2.3%).
2026-03-19
Eurozone Labor Cost Growth Moderates in Q3
Hourly labor costs in the Euro Area increased by 3.3% year-on-year in the third quarter of 2025, easing from 3.6% in the previous quarter and below the preliminary estimate of 3.5%. Wage and salary growth slowed to 3.0% from 3.7% in Q2 2025, while non-wage costs, including social contributions and benefits, climbed 4.0% compared with 3.4%. By sector, the business economy saw a 3.3% rise in hourly labor costs, led by construction (+4.3%), industry (+3.3%), and services (+3.2%), whereas the non-business economy posted a more moderate increase of 3.1%. Among the Eurozone’s largest economies, labor cost growth moderated in Germany (4.0% vs. 4.3% in Q2), Italy (2.8% vs. 3.8%), Spain (2.1% vs. 3.7%), and the Netherlands (3.8% vs. 6.5%), while France saw a slight acceleration (1.7% vs. 1.6%).
2025-12-17