Croatia is at the top of the EU in labor cost growth at the beginning of the year

Croatia was among the EU countries with the highest growth in nominal labor costs per hour in the first quarter, alongside Bulgaria, a report from Eurostat showed on Monday.

In the eurozone, the nominal labor cost per hour in the first three months of this year was 5.1 percent higher than in the same period of 2023, according to seasonally adjusted data from Eurostat. In the fourth quarter, it had increased by 3.4 percent, confirmed the statistical office. At the EU level, it increased in the first quarter by 5.5 percent, after a revised 4.1 percent growth in the previous three months.

The wage cost in the eurozone increased at the beginning of the year by 5.3 percent, and the contribution cost by 4.5 percent. In the EU, the wage cost rose by 5.8 percent, and the contribution cost by 4.8 percent, according to the statistical office’s tables.

In the eurozone, the total labor cost in industry increased by 4.8 percent, and in services and construction sectors by five and 5.2 percent, respectively. In the EU, it increased by 5.5 percent in services and industry, and 5.8 percent in construction sector.

Croatia alongside Bulgaria

Among EU countries, the nominal wage and contribution costs increased the most in Romania in the first quarter, by 16.4 percent compared to the same period in 2023, according to Eurostat’s announcement. Bulgaria follows with a total labor cost growth of 15.8 percent.

Croatia maintained its position at the top with a nominal labor cost growth per hour in the first quarter of this year of 15.2 percent compared to the same period last year. In the fourth quarter, they had increased by 15.6 percent, according to revised data.

Nominal wage costs in Croatia in the first three months of 2024 were 15.3 percent higher than in the same period last year, and contribution costs were up by 14.9 percent, according to Eurostat data.

Double-digit growth in total labor costs was also recorded at the beginning of the year in Poland, Hungary, Latvia, Slovakia, and Lithuania, ranging from 14.1 to 10.9 percent. The mildest increases were recorded in Belgium and Denmark, at 2.3 and 2.5 percent, respectively.