INS: Hourly labour cost up by more than 8.69pct in Q4 2020

The hourly labour cost, in adjusted form (depending on the number of business days) saw an increase of 2.61pct in the fourth quarter of 2020 compared to the previous quarter and an increase rate of 8.69pct compared to the last three months of 2019, according to data published on Friday by the National Institute of Statistics (INS), as reported by AGERPRES.

Thus, compared to the third quarter of 2020, the hourly labour cost (adjusted depending on the number of business days) increased in most economic activities.

The most significant increases in the hourly labour cost (adjusted depending on the number of business days) were recorded in the entertainment, cultural and recreational field (14.54pct), hotels and restaurants (14.06pct), constructions (10.56pct) and real estate transactions (10.04pct).

The largest decrease in the hourly labour cost (adjusted depending on the number of business days) was recorded in education (-27.15pct), due to an increase of the actual time worked compared to the previous quarter (phenomenon characteristic of this activity in Q4 of each year, caused by the resumption of the school year).

At a considerable distance, with decreases in the hourly labour cost (adjusted depending on the number of business days), were recorded in the public administration (-3.43pct), and in the production and supply of electricity and heat, gas, hot water and air conditioning (-1.04pct).

Compared to the previous quarter, the direct expenditure component (with wages) increased by 2.56pct, and that of indirect (non-wage) expenditures increased by 3.66pct.

Compared to the same quarter of the previous year, the hourly labour cost (adjusted depending on the number of business days) rose for most economic activities.

The most significant increases in the hourly labour cost (adjusted depending on the number of business days) were recorded in the entertainment, cultural and recreational field (22.25pct), financial brokerage and insurance (14.09pct), information and communications (11.95pct), and in healthcare and social assistance (11.73pct).

Compared to the reference period, the decrease in the hourly labour cost (adjusted depending on the number of business days) was observed only in hotels and restaurants (-3.82pct), where the economic units were strongly affected by the interruption/cessation of the related activity, by reducing the actual time worked in the context of the COVID-19 pandemic, but also by reducing labour costs, caused by furloughs or lower earnings during the state of alert.

The INS also mentions that, compared to the same quarter of the previous year, the direct expenditures (wages) component increased by 8.67pct, and the indirect expenditures component (non-wage) increased by 9.15pct.