A more recent publication of this set of statistics is available.

Latest publication: Labour cost index 2019, 2nd quarter

Published: 8 September 2015

Cost of an hour worked rose by 1,3 per cent in April to June

Private sector labour costs rose by 1.3 per cent in April to June 2015 when compared with the respective period of the year before. Seasonally adjusted labour costs went up by 1.3 per cent in April to June 2015. Labour costs without one-off pay items, such as performance-based bonuses, increased by 1.0 per cent compared to the corresponding period one year ago. Over the same period, the index of wage and salary earnings for the private sector went up by 1.2 per cent.

Year-on-year change in labour costs in the private sector from the corresponding quarter of the previous year

Year-on-year change in labour costs in the private sector from the corresponding quarter of the previous year

In the public sector, the cost of an hour worked decreased by 0.6 per cent in April to June 2015 when compared with the respective period of the year before. Labour costs without one-off pay items declined by 1.2 per cent over the same period. Seasonally adjusted labour costs went down by 1.0 per cent. Over the same period, the index of wage and salary earnings in the central government sector went up by 1.7 per cent.

In the local government sector, the cost of an hour worked rose by 2.1 per cent in April to June 2015 when compared with the respective period of the year before. Labour costs without one-off pay items rose by 1.8 per cent. Over the same period, the index of wage and salary earnings in the local government sector went up by 1.0 per cent. According to the Labour Cost Index, the wage and salary costs of the local government sector grew by 0.9 per cent and hours worked decreased by 0.9 per cent year-on-year. The rise in social security costs played a part in accelerating the growth in the cost of labour for an hour worked in the local government sector.

The second quarter of 2015 had the same number of working days as one year earlier.

Year-on-year change in labour costs according to Standard Industrial Classification TOL 2008, 2nd quarter 2015

Code Industry Labour costs,
year-on-year change
Labour costs Labour costs,
excluding one-off items
Labour costs, seasonally adjusted
B to S Total, private sector 1,3 1,0 1,3
B to E Manufacturing -0,2 -0,3 -0,3
F Construction 0,3 -0,1 0,5
G to N Business service activities 2,4 1,9 2,0
J to R Central government -0,6 -1,2 -1,0
D to S Local government 2,1 1,8 ..

The cost per an hour worked in manufacturing industries (B to E) decreased by 0.2 per cent, increased by 0.3 per cent in construction (F), and grew by 2.4 per cent in business service activities (G to N). In manufacturing industries, the growth in the number of hours worked (2.7 per cent) compared to the corresponding quarter last year slowed down the growth in costs. According to the Labour Cost Index, wage and salary costs grew by 2.1 per cent at the same time. In construction, both wage and salary costs and hours worked diminished. In business service activities, wage and salary costs declined by 0.5 per cent and hours worked decreased by 3.2 per cent.

In manufacturing industries, the highest growth in the cost of an hour worked was found in the forest industry, 3.4 per cent, while in the metal industry, the cost decreased by 1.3 per cent. Among service industries, growth was biggest in information and communication activities, 6.2 per cent. The costs grew by 1.7 per cent in financial and insurance activities.

The seasonally adjusted cost of an hour worked in all manufacturing (B to E) went down by 0.3 per cent in April to June 2015 compared with the corresponding period last year. In construction, the seasonally adjusted cost of an hour worked grew by 0.5 per cent and in business service activities by 2.0 per cent.

In the forest industry, the seasonally adjusted cost of an hour worked went up by 2.6 per cent and in the metal industry it went down by 1.2 per cent in the April to June period of 2015 from the same period of the previous year. In financial intermediation and insurance activities, costs increased by 2.0 per cent.

The labour cost index measures the change in labour costs calculated per hour worked. Hours actually worked refer to the working hours an employee has spent on his/her actual duties. Hours worked include Sunday and overtime work but not paid hours off work, like the hours of annual leaves, national holidays or paid sickness absences.

In the index, hours worked or the structure of personnel have not been standardised. In the index, the cost of an hour worked is calculated directly as the ratio of industry-specific wages and salaries sum and social insurance contributions to the hours worked for each quarter. The change in average labour costs is affected by changes in regular earnings, performance-based bonuses and other one-off pay components, social insurance contributions, as well as changes in the number of hours worked and the structure of the labour force.


Source: Wages, Salaries and Labour Costs, Statistics Finland

Inquiries: Pekka Haapala 029 551 3460, Hanna Jokimäki 029 551 3667, Petri Ruohonen 029 551 3465, tvkindeksi@stat.fi

Director in charge: Mari Ylä-Jarkko

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Tables

Tables in databases

Appendix tables

Revisions in these statistics

Updated 08.09.2015

Referencing instructions:

Official Statistics of Finland (OSF): Labour cost index [e-publication].
ISSN=1798-3746. 2nd quarter 2015. Helsinki: Statistics Finland [referred: 17.11.2019].
Access method: http://www.stat.fi/til/tvki/2015/02/tvki_2015_02_2015-09-08_tie_001_en.html