The hourly labor cost, an indicator of the wage burden for employers, increased by 18.2% in the first quarter of 2017 compared to the same period last year.

The highest increases were recorded in healthcare and social assistance (37.8%), cultural activities (30%), education (22.3%), and public administration (21.9%), according to the National Statistics Institute (INS). These sectors that saw the highest growth are mainly funded by the state.

The administrative and support services sector, which includes the private outsourcing centers, also saw a 21.1% increase in labor costs, due to higher competition for employees.

The growth pace of labor costs reached 12.3% in the last quarter of 2016, compared to the same period in 2015.

The hourly labor cost increased by 0.96% in the first quarter of 2017 compared to the previous quarter. This came after a quarterly advance of 3.2% in the last three months of 2016.

The net average wage in Romania, which includes both wages and bonuses, increased by 14.2% in March this year compared to March 2016, reaching EUR 515.

editor@romania-insider.com