Hourly labour costs in the euro area (EA17) rose by 1.0% in the year up to the third quarter of 2013, compared with +1.1% for the second quarter of 2013. It was their slowest pace in three years in the three months to September, Eurostat said, in a sign the cost competitiveness of eurozone countries was improving. In the EU28, the annual rise was also 1.0% up to the third quarter of 2013, compared with +1.1% in the previous quarter.

Labour costs in Cyprus’ construction industry dropped by 6.1%, compared with a reduction of 0.2% in the eurozone and 0.2% in the EU. In the service sector, labour costs fell 5.5% against a 1.0% rise in the eurozone and 1.0% in the EU. The two main components of labour costs are wages and salaries and non-wage costs. Wage costs in Cyprus dropped 7.7% and non-wage fell 6.7%. In the euro area, wages and salaries per hour worked grew by 1.3% and the non-wage component by 0.4% in the year up to the third quarter of 2013, compared with +1.4% and +0.3% respectively for the previous quarter. In the EU28, hourly wages & salaries rose by 1.2% and the non-wage component by 0.3% in the year up to the third quarter of 2013, compared with +1.3% and +0.5% respectively for the second quarter of 2013.

Source: Cyprus Mail