The hourly labor cost in the economy as a whole increased by 1.5% in the euro area and by 1.7% in the EU in the first quarter of this year compared to the same period in 2020, according to data from the European Statistical Office ( Eurostat), quoted by Agerpres. Among the Member States, the highest increases were in Lithuania (12%), Slovenia (11.1%), Portugal (7%), Poland and Greece (both by 5.8%), and Romania (5.6%). %). Eurostat announced on Wednesday that Romania had in Q1 one of the lowest job vacancy rates in the EU.
The hourly labor cost includes wage costs and non-wage costs, as well as social security contributions paid by employers. In Romania, wage costs registered an annual increase of 5.6% in the first quarter of this year, and non-wage costs registered an annual increase of 5%.
The advance of labor costs in Romania occurred mainly amid the 6.6% increase in the hourly labor cost in the non-business sector, to which is added a 5.2% increase in the hourly labor cost employment in the business sector, in both cases being increases well above the European average, 2.3%, and 1.4% respectively. By sectors of the economy, in Romania, the hourly labor cost increased by 5.5% in industry and in the services sector and by 1.8% in construction.
Separately, Eurostat announced on Wednesday that Romania had one of the lowest job vacancies in the EU in Q1. In the first three months of this year, the vacancy rate was 2.1% in the euro area and 2% in the European Union. The Member States with the lowest job vacancy rates were: Greece (0.3%), Spain (0.7%), Romania, Slovakia, Portugal, and Bulgaria (all with 0.8%).
On the other hand, the Member States with the highest vacancy rates in the first quarter were: the Czech Republic (5%), Belgium (3.5%), and the Netherlands (3%).
Compared to the situation in the first quarter of 2020, the vacancy rate decreased in only eight Member States, including Romania, remained stable in five countries and increased in 12 countries. In Romania, the vacancy rate decreased slightly from 0.9% in Q1 2020 to 0.8% in Q1 2021.