Croatia Among the Top in the EU for Growth in Labor Costs in the Second Quarter

In the second quarter, Croatia ranked among the EU countries with the strongest growth in nominal labor costs per hour, significantly higher than the European average, according to data released by the European statistical office on Friday.

Calendar-adjusted nominal labor costs per hour in the eurozone increased by 4.5 percent in the second quarter compared to the same period last year, following a 5.2 percent jump at the beginning of the year.

In the 27-member EU, they rose by five percent, after a 5.4 percent increase from January to March.

The growth rates in both areas are the highest since Eurostat began publishing data just over 20 years ago.

Labor costs in the eurozone rose by 4.6 percent in the second quarter, while contribution costs increased by four percent. In the EU, they rose by 5.1 and 4.4 percent, respectively.

The highest increases in both areas in the second quarter were seen in nominal labor costs per hour in the service sector, which rose by 4.8 percent in the eurozone and by 5.2 percent in the EU.

Croatia Alongside Slovenia

Among EU countries, nominal labor costs per hour increased the most in Hungary in the second quarter, by 17.3 percent.

Croatia follows with a 14.5 percent increase in calendar-adjusted nominal labor costs per hour in the second quarter compared to the same period last year, the strongest since joining the EU in mid-2013. At the beginning of the year, they rose by 11.4 percent.

The strongest growth in labor costs during the period from April to June was in the construction sector, slightly over 20 percent. In the service sector, they increased by just over 14 percent, and the industry recorded almost the same percentage growth.

Slovenia also recorded the same percentage growth in costs during the period from April to June, along with Romania and Bulgaria, where they rose by 14.4 and 14.2 percent, respectively.

The mildest increases in labor costs were recorded in Malta and Germany, at 2.1 percent.