Luxembourg had the highest hourly labour costs in the European Union in 2023, at €53.9, ahead of Denmark (€48.1) and Belgium (€47.1), new data from Eurostat has found.
The two main components of labour costs are wages and salaries and non-wage costs (such as employers’ social contributions), and for Europe as a whole, hourly labour costs came in at €31.8 in the EU and €35.6 in the euro area last year, compared to €30.2 and €34.0, respectively, in 2022.
The countries with the lowest hourly labour costs in Europe included Bulgaria (€9.3), Romania (€11.0) and Hungary (€12.8), the data showed.
Hourly labour costs by sector
In the industrial sector, hourly labour costs stood at €32.2 across the EU, while in construction, they stood at €28.5 and in services at €31.8. In the mainly non-business economy, excluding public administration, they stood at €32.4.
In 2023, hourly labor costs across the entire economy, expressed in euros, increased by 5.3% in the EU compared to 2022, and by 4.8% in the euro area.
Among the euro area countries, hourly labour costs rose in all nations. The most significant increases were observed in Croatia (14.2%), Lithuania (12.4%), and Estonia (11.7%).
Outside the euro area, the largest increases were recorded in Hungary (17.0%), Romania (16.5%), Bulgaria (14.0%), and Poland (12.4%), expressed in the national currency of each, according to Eurostat.
Hourly Labour Costs in European Countries (2023)
| Country | Hourly Labour Cost (Euro) |
|---|---|
| Luxembourg | 53.9 |
| Denmark | 48.1 |
| Belgium | 47.1 |
| Netherlands | 43.3 |
| France | 42.2 |
| Germany | 41.3 |
| Austria | 40.9 |
| Ireland | 40.2 |
| Sweden | 38.9 |
| Finland | 37.1 |
| European Union – 27 countries (from 2020) | 31.8 |
| Italy | 29.8 |
| Slovenia | 25.5 |
| Spain | 24.6 |
| Cyprus | 20.1 |
| Estonia | 18.3 |
| Czechia | 18 |
| Slovakia | 17.2 |
| Portugal | 17 |
| Greece | 15.7 |
| Lithuania | 14.7 |
| Poland | 14.5 |
| Croatia | 14.4 |
| Malta | 14.2 |
| Latvia | 13.5 |
| Hungary | 12.8 |
| Romania | 11 |
| Bulgaria | 9.3 |
