Costs of hourly work at private sector up 1.4% in Q2

Private sector labour costs increased by 1.4 per cent in April to June 2019 when compared with the respective period of the year before, according to Statistics Finland.

Seasonally adjusted labour costs went up by 0.3 per cent in April to June 2019. There was one less working day in the second quarter of 2019 than in the corresponding period of 2018

In the private sector, labour costs without one-off pay items, such as performance-based bonuses, increased by 1.2 per cent in April to June 2019 compared to the corresponding quarter one year ago. The rise in costs was mainly due to the growth in wages and salaries subject to preliminary withholding tax.

Over the same period, the index of wage and salary earnings for the private sector went up by 2.2 per cent.

In the central government sector, the cost of an hour worked increased by 2.3 per cent in April to June 2019 when compared with the respective period of the year before. The year-on-year change in labour costs without one-off pay items increase was 2.3 per cent.

Seasonally adjusted labour costs went up by 2.5 per cent. The rise in costs was mainly due to the growth in wages and salaries subject to preliminary withholding tax. Over the same quarter, the index of wage and salary earnings in the central government sector went up by 3.4 per cent.

In the local government sector, the cost of an hour worked increased by 4.3 per cent in April to June 2019 when compared with the respective period of the year before.

The year-on-year change in labour costs without one-off pay items increase was 4.4 per cent. Seasonally adjusted labour costs went up by 4.3 per cent. The rise in costs was mainly due to the growth in wages and salaries subject to preliminary withholding tax and the decrease in the number of hours worked. Over the same period, the index of wage and salary earnings in the local government sector went up by 3.8 per cent.