Labor costs in Romania increase much faster than EU average

Romanian companies’ labor costs recorded the biggest growth in the European Union in the second quarter on this year, namely 18.6% year-on-year, almost 12 times higher than the 1.6% average recorded at EU level, according to data EU’s statistical office Eurostat released on September 15. Other European countries with a fast labor cost advance included Hungary, the Czech Republic, Bulgaria, Lithuania and Poland, all with growths of over 10%. Finland was the only country in the EU where labor costs declined during this period. In the eurozone, labor cost advanced by 1.4% year-on-year in the second quarter. The cost of labor increased in Romania across all economic activities, according to the National Statistics Institute (INS). The highest increases were recorded in education (39%), health and social care (39%), entertainment, culture and recreation (36.5%) and public administration (26.3%). In the first quarter, hourly labor costs in Romania went up by about 17% year-on-year. editor@romania-insider.com