Área Euro Custo do Trabalho

Hourly labor costs in the Euro Area rose by 3.2% year-on-year in Q1 2025, marking the smallest increase since Q3 2022, according to preliminary estimates. This compares with a 3.7% rise in the previous quarter. The wage component increased by 3.3%, also the slowest pace since Q3 2022, down from 4.1% previously. Meanwhile, the non-wage component accelerated, rising by 3% compared to 2.6% in the prior period. Across sectors, labor costs rose the least in industry, up 2.4% versus 4.3% previously. In the services sector, costs increased by 4.4%, up from 3.8%, while the construction sector saw a 4.9% rise, compared to 4.1% in the previous quarter.