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Euro area labour costs rise in Q3 2025 as non-wage expenses accelerate

19 Dec '25
1 min read
Euro area labour costs rise in Q3 2025 as non-wage expenses accelerate
Pic: Shutterstock

Insights

  • Euro area hourly labour costs increased 3.3 per cent in the third quarter of 2025, while the EU recorded a 3.7 per cent rise year on year, according to Eurostat.
  • Wage growth lagged non-wage costs in both regions.
  • Business sectors saw faster increases than non-business activities.
  • Bulgaria led country-wise gains, while France, Italy and Malta recorded the weakest trends.
Euro area hourly labour costs rose by 3.3 per cent in the third quarter of 2025, while the European Union (EU) recorded a 3.7 per cent increase compared with the same period last year, according to the Eurostat.

In the euro area, hourly wages and salaries rose 3 per cent, while non-wage costs climbed 4 per cent. Across the European Union (EU), wage costs increased 3.5 per cent and the non-wage component advanced 4.2 per cent, Eurostat said in a press release.

By economic activity, euro area labour costs rose 3.1 per cent in the mainly non-business economy and 3.3 per cent in the business economy, including a 3.3 per cent increase in industry.

In the EU, labour costs rose 3.4 per cent in the non-business economy and 3.8 per cent in the business economy, with industry recording a 3.7 per cent increase.

At country level, Bulgaria recorded the highest annual growth in hourly wage costs at 12.4 per cent, followed by Lithuania, Croatia and Hungary. The weakest increases were seen in France, Slovenia, Spain, Austria and Italy, while Malta registered a decline of 1.4 per cent.

ALCHEMPro News Desk (SG)

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