Eurozone Labor Costs Revised Higher

Hourly labor costs in the Euro Area increased by 3.1% year-on-year in Q2 2026, following a 3.2% rise in the previous period, revised higher from the flash estimate of 3.0%. Wages and salaries rose by 3.0%, down from 3.3% in Q1, while non-wage costs advanced by 3.2%, up from 2.8%. Hourly labor costs were the highest in construction (3.9%), while growth was closer to the aggregate average in service-providing industries (3.0%) and industry (2.9%).

Hourly labor costs in the Euro Area increased by 3% year-on-year in Q2 2026, following a 3.2% rise in the previous period, preliminary estimates showed. This marked the slowest pace of growth since Q4 2021. Wages and salaries rose by 3.0%, down from 3.3% in Q1, while non-wage costs advanced by 3%, up from 2.8%.

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%).