Labor costs per hour in Croatia are about sixty percent lower than the EU average

In 2017, Croatia was among the countries of the European Union with the lowest labor costs per hour, two and a half times below the EU average, according to a report by the European statistical office Eurostat.

At the EU level, the average labor costs per hour last year amounted to 26.8 euros. The highest were in the industry, where they amounted to 27.4 euros per hour. The service sector was in second place with 26.6 euros, while the lowest costs were recorded in the construction sector, at 23.7 euros per hour.

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In the eurozone, average labor costs per hour last year amounted to 30.3 euros. The industry led with 33.4 euros per hour. The service sector followed with 29.3 euros per hour, and construction with 26.7 euros per hour, as determined by Eurostat.

The share of contributions in total labor costs per hour in the EU last year was 24 percent, and 25.9 percent in the eurozone.

Significant differences among EU countries

Statisticians highlight significant differences in labor costs among EU countries, with Scandinavian and Benelux countries dominating the upper part of the scale, while the lower part belonged to countries in Eastern and Southeastern Europe.

Thus, the highest average labor cost per hour in the economy in 2017 was recorded by Denmark, at 42.5 euros. Belgium followed with 39.6 euros, Luxembourg with 37.6 euros, Sweden with 36.6 euros, and France with 36 euros.

On the other hand, the lowest average labor cost per hour was recorded by Bulgaria, at only 4.9 euros per hour. Romania followed with 6.3 euros, Lithuania with 8 euros, Latvia with 8.1 euros, Hungary with 9.1 euros, and Poland with 9.4 euros.

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Croatia was also in that group with an average labor cost per hour in 2017 of 10.6 euros.

Unlike the EU, the highest labor cost per hour in the Croatian economy in 2017 was recorded in the service sector, at 11.4 euros. The construction sector was in second place with 9.8 euros, while the industry was in third place with 9.7 euros.

Croatia also ranked among the EU countries with the lowest share of contribution costs in total labor costs per hour in 2017, at 15.0 percent. Only Malta, with 6.7 percent, Luxembourg, with 11.9 percent, and Ireland and Denmark, with 13.7 and 13.8 percent respectively, recorded a lower share of contributions, according to the Eurostat report.

The highest share of contribution costs in total labor costs per hour in 2017 was recorded by France, at 32.8 percent. Higher than 30 percent was also in Sweden, where it amounted to 31.1 percent.