Home > Statistics > Labour cost index > 2015 > 4th quarter > Cost of an hour worked went up by 0,8 per cent in October to December year-on-year

Published: 10 March 2016

Cost of an hour worked went up by 0,8 per cent in October to December year-on-year

Private sector labour costs rose by 0.8 per cent in October to December 2015 when compared with the respective period of the year before. Seasonally adjusted labour costs rose by 1.8 per cent in October to December 2015. Labour costs without one-off pay items, such as performance-based bonuses, increased by 0.2 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

In the central government sector, the cost of an hour worked increased by 0.8 per cent in October to December 2015 when compared with the respective period of the year before. Labour costs without one-off pay items increased by 1.0 per cent over the same period. Seasonally adjusted labour costs went up by 1.0 per cent. Over the same period, the index of wage and salary earnings in the central government sector went up by 1.2 per cent.

In the local government sector, the cost of an hour worked rose by 1.0 per cent in October to December 2015 when compared with the respective period of the year before. Labour costs without one-off pay items rose by 1.0 per cent. Over the same period, the index of wage and salary earnings in the local government sector went up by 0.7 per cent.

The fourth quarter of 2015 had one working day more than year earlier.

Year-on-year change in labour costs according to TOL 2008, 4rd quarter 2015

Code	Industry	Labour costs, year-on-year change
		Labour costs	Labour costs, without one-off pay items	Labour costs, seasonally adjusted
B to S	Total, private sector	0,8	0,2	1,8
B to E	Manufacturing	2,3	0,8	3,5
F	Construction	1,4	1,3	2,2
G to N	Business service activities	0,2	-0,0	0,9
J to R	Central government	0,8	1,0	1,0
D to S	Local government	1,0	1,0	..

The cost per an hour worked in manufacturing industries (B to E) grew by 2.3 per cent, increased by 1.4 per cent in construction (F), and increased by 0.2 per cent in business service activities (G to N). In manufacturing industries, the decline in the number of hours worked (3.9 per cent) compared to the corresponding quarter last year sped up the growth in costs. Over the same period, wages and salaries subject to preliminary withholding tax contracted by 2.0 per cent according to the data of the Labour Cost Index. In construction, both wage and salary costs and hours worked diminished. In business service activities, wage and salary costs declined by 1.0 per cent and hours worked decreased by 0.6 per cent.

In manufacturing industries, the highest growth in the cost of an hour worked was found in the metal industry, 5.8 per cent. Labour costs without one-off pay items rose by 1,3 per cent in the metal industry. In the forest industry, the cost went up by 1.9 per cent. Among service industries, growth was biggest in information and communication activities, 1.6 per cent. In transportation and storage, the costs went down by 2.8 per cent.

The seasonally adjusted cost of an hour worked in all manufacturing (B to E) went up by 3.5 per cent in October to December 2015 compared with the corresponding period last year. In construction, the seasonally adjusted cost of an hour worked went up by 2.2 per cent and in business service activities it increased by 0.9 per cent.

In the forest industry, the seasonally adjusted cost of an hour worked went up by 3.8 per cent and in the metal industry by 7.6 per cent in the October to December period of 2015 from the same period of the previous year. In information and communication activities, costs increased by 3.3 per cent.

The labour cost index measures the change in wage and salary 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 age structure of personnel have not been standardised. 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

Publication in pdf-format (287.8 kB)

Tables

Tables in databases

Pick the data you need into tables, view the data as graphs, or download the data for your use.

• Database tables and their variables
• Archived tables

Appendix tables

• Appendix table 1. Labour costs, Labour Cost Index 2012=100 (10.3.2016)
• Appendix table 2. Labour costs, percentage changes, Labour Cost Index 2012=100 (10.3.2016)
• Appendix table 3. Labour costs, excluding one-off items, Labour Cost Index 2012=100 (10.3.2016)
• Appendix table 4. Labour costs, excluding one-off items, percentage changes, Labour Cost Index 2012=100 (10.3.2016)
• Appendix table 5. Seasonally adjusted labour costs, Labour Cost Index 2012=100 (10.3.2016)
• Appendix table 6. Seasonally adjusted labour costs, percentage changes, Labour Cost Index 2012=100 (10.3.2016)
• Appendix table 7. Standard Industrial Classification 2008 (10.3.2016)

Revisions in these statistics

• Revision of data (10.3.2016)

---

Updated 10.3.2016