Hourly labour costs drop in Cyprus

The average hourlylabour cost across the whole economy dropped in Cyprus by 3.9% in nominal values during the second quarter of 2014, compared the same period in 2013.

Meanwhile in the Euro area and the EU, the average hourly labour cost increased by 1.2%.

According to Eurostat, the average decrease in labour costs in Cyprus by 3.9%, the highest in the Euro area and EU, was due to a 4.5% cut in wages and salaries, and 0.6% in non-wage costs.

In Cyprus, the total hourly labour cost dropped by 0.4% in industry, while in the Euro area and the EU it rose by 2.5% and 2.8% respectively.

In construction, the labour cost dropped by 9%, compared to a 0.7% increase in the Euro area and a 0.4% increase in the EU.

Furthermore, in the services sector, the hourly labour cost dropped in Cyprus by 4.2% compared to 0.9% increases in the Euro area and the EU.

Source: Famagusta Gazette

Cyprus Profile

articles | 17 September 2014