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%). source: EUROSTAT

Labour Costs In the Euro Area increased to 128.60 points in the second quarter of 2026 from 116.20 points in the first quarter of 2026. Labour Costs in Euro Area averaged 96.44 points from 2009 until 2026, reaching an all time high of 128.60 points in the second quarter of 2026 and a record low of 75.70 points in the first quarter of 2009. This page provides the latest reported value for - Euro Area Labour Costs - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Euro Area Labour Costs - data, historical chart, forecasts and calendar of releases - was last updated on October of 2026.

Labour Costs In the Euro Area increased to 128.60 points in the second quarter of 2026 from 116.20 points in the first quarter of 2026. Labour Costs in Euro Area is expected to be 131.02 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Euro Area Labour Costs is projected to trend around 134.29 points in 2027 and 137.38 points in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-08-20 09:00 AM
Labour Cost Index YoY Flash
Q2 3% 3.2% 3.0%
2026-09-16 09:00 AM
Labour Cost Index YoY Final
Q2 3.1% 3.2% 3.0% 3.0%


Related Last Previous Unit Reference
Employment Change 0.10 0.10 percent Jun 2026
Full Time Employment 127848.40 126953.90 Thousand Jun 2026
Labor Force Participation Rate 75.90 75.50 percent Jun 2026
Labour Cost Index YoY 128.60 116.20 points Jun 2026
Long Term Unemployment Rate 2.00 2.00 percent Jun 2026
Part Time Employment 32339.40 32176.20 Thousand Jun 2026
Population 353.16 352.28 Million Dec 2026
Productivity 105.38 104.83 points Jun 2026
Unemployed Persons 11357.00 11331.00 Thousand Aug 2026
Unemployment Rate 6.40 6.40 percent Aug 2026
Wage Growth YoY 3.00 3.40 percent Jun 2026
Wages 2708.00 2652.00 EUR/Month Mar 2026
Youth Unemployment Rate 15.00 15.10 percent Aug 2026


Euro Area Labour Costs
The Labour Cost Index in the Euro Area is a short-term indicator showing the development of hourly labour costs incurred by employers, in nominal terms, that is without adjusting for price developments. It is calculated dividing the labour cost in national currency by the number of hours worked. The quarterly changes in hourly employers’ costs are measured for total labour costs and its main components: wages and salaries; and non-wage costs (labour costs other than wages and salaries). Total labour costs (TOT) cover wage and non-wage costs less subsidies. They do not include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc.
Actual Previous Highest Lowest Dates Unit Frequency
128.60 116.20 128.60 75.70 2009 - 2026 points Quarterly
2020=100, WDA

News Stream
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%).
2026-09-16
Eurozone Labor Costs Growth Weakest Since 2021
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%.
2026-08-20
Euro Area Labor Costs Growth Eases to 3.2% in Q1
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%).
2026-06-16