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%). source: EUROSTAT

Labour Costs In the Euro Area decreased to 115.80 points in the third quarter of 2025 from 123.90 points in the second quarter of 2025. Labour Costs in Euro Area averaged 95.20 points from 2009 until 2025, reaching an all time high of 123.90 points in the second quarter of 2025 and a record low of 75.80 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 February of 2026.

Labour Costs In the Euro Area decreased to 115.80 points in the third quarter of 2025 from 123.90 points in the second quarter of 2025. Labour Costs in Euro Area is expected to be 115.01 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 120.36 points in 2027 and 122.65 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-11-19 10:00 AM
Labour Cost Index YoY Flash
Q3 3.5% 3.6% 3.2%
2025-12-17 10:00 AM
Labour Cost Index YoY Final
Q3 3.3% 3.9% 3.5% 3.5%


Related Last Previous Unit Reference
Employment Change 0.20 0.20 percent Dec 2025
Full Time Employment 125513.80 124878.00 Thousand Sep 2025
Labor Force Participation Rate 75.90 75.80 percent Sep 2025
Labour Cost Index YoY 115.80 123.90 points Sep 2025
Long Term Unemployment Rate 2.00 2.10 percent Sep 2025
Part Time Employment 31714.50 32459.20 Thousand Sep 2025
Population 351.38 350.18 Million Dec 2025
Productivity 104.10 104.19 points Sep 2025
Unemployed Persons 10792.00 10853.00 Thousand Dec 2025
Unemployment Rate 6.20 6.30 percent Dec 2025
Wage Growth YoY 3.00 3.80 percent Sep 2025
Wages 2654.00 2626.00 EUR/Month Sep 2025
Youth Unemployment Rate 14.30 14.40 percent Dec 2025


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
115.80 123.90 123.90 75.80 2009 - 2025 points Quarterly
2020=100, WDA

News Stream
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
Euro Area Labour Costs Rise at Slower Pace in Q3
Hourly labor costs in the Euro Area rose by 3.5% year-on-year in Q3 2025, following a 3.6% increase in the prior period, according to preliminary estimates. The wage component increased by 3.4%, down from 3.7% previously, while the non-wage component rose by 3.5%, after a 3.6% advance in Q2.
2025-11-19
Eurozone Labor Costs Rise 3.6% in Q2
Hourly labor costs in the Euro Area increased by 3.6% year-on-year in the second quarter of 2025, a touch below the preliminary estimate of 3.7% but up from 3.4% in the previous quarter. Growth was driven by a 3.7% rise in wages and salaries, compared with 3.5% in the first quarter, while non-wage costs such as social contributions and benefits climbed 3.4%, up from 3.2% previously. Across sectors, the business economy recorded a 4.0% rise in hourly labor costs, led by construction (+4.7%), services (+4.3%), and industry (+3.3%). In contrast, the non-business economy saw a more moderate increase of 2.7%. Among the Eurozone’s largest economies, labor cost growth strengthened in Germany (3.5% vs. 2.5% in Q1) and the Netherlands (6.0% vs. 5.9%). In contrast, it remained stable in Spain (3.7%) but slowed in Italy (3.8% vs. 4.4%) and France (1.4% vs. 2.0%).
2025-09-16