Romania's hourly labour cost up over 12pct in Q4 of 2019

In Quarter IV 2019, the adjusted hourly labour cost (business days adjusted) registered a decrease rate of 0.27 percent compared to the previous quarter and an increase of 12.03 percent compared to the same quarter of 2018, according to data published by the National Institute of Statistics (INS) on Thursday. Thus, in Q4 2019, the hourly labour cost (business days adjusted) increased in the majority of the economic activities compared to the previous quarter. The most significant increases of the hourly labour cost (adjusted according to the number of business days) were found in real estate activities (7.75 percent), construction (6.94 percent), transportation and storage (5.94 percent), financial and insurance activities (5.69 percent), information and communication (5.35 percent). Compared to Quarter III of 2019, the most significant decrease of the hourly labour cost (business days adjusted) was registered in education (-27.85 percent), determined by the increase recorded in the hours actually worked (a normal phenomenon for the current quarter determined by the starting of the new school year). At a considerable distance, with relevant decreases in the hourly labour cost (business days adjusted) there were situated the activities related to arts, entertainment and recreation (-3.49 percent), public administration (-2.77 percent), mining and quarrying (-2.27 percent), respectively. Compared to Q3, the direct costs component (wages) decreased by 0.29 percent, while the indirect costs component (non-wages costs) increased by 0.11 percent. As against the same quarter of the previous year, the hourly labour cost (working days adjusted) increased in all economic activities. The highest increases of the hourly labour cost (business days adjusted) were recorded in education (21.00 percent), as an effect of the enforcement of legal provisions, followed by constructions (19.85 percent), accommodation and food service activities (15.49 percent) and professional, scientific and technical activities (14.18 percent). The lowest increases of the hourly labour cost (working days adjusted) were registered in human health and social work activities (6.10 percent), mining and quarrying (6.16 percent), respectively. According to the INS, compared to the same quarter of the previous year, the increase of the direct costs component (wages) was 12.06 percent, whereas that of indirect costs component (non-wages costs) stood at 11.23 percent. AGERPRES (RO - author: George Banciulea, editor: Mariana Nica; EN - author: Rodica State, editor: Cristina Zaharia)