Romania sees highest increase in labor costs in EU

The average hourly labor cost grew by 14.7% in Romania between July and September compared to the same period last year. It was the highest growth in the European Union, according to EU’s statistical office Eurostat. The average labor cost growth amounted to 1.9% in the EU and 1.5% in the euro zone. It is the third consecutive quarter in which Romania sees the highest annual increase in labor costs in the EU. In the first quarter, the growth pace reached 11.9%, and went up to 13.3% in the second quarter. The hourly labor cost includes salaries and non-salary costs, such as the social contributions paid by employers. The advance in Romania’s labor costs was mainly due to a 25.6% increase in the hourly labor cost in the non-business sector, plus an 11.3% increase in the business sector. Both were increases well above the European average. editor@romania-insider.com