17.06.201908:31:00UTC+00Eurozone Labor Costs Growth Improves In Q1

Eurozone labor costs increased at a slightly faster pace in the first quarter, Eurostat reported Monday.

Hourly labor costs grew 2.4 percent year-on-year, slightly faster than the 2.3 percent increase seen in the fourth quarter.

The two main components of labor costs are wages and salaries, and non-wage costs. In the euro area, the cost of wages and salaries per hour worked grew by 2.5 percent annually versus 2.3 percent a quarter ago.

At the same time, the non-wage component gained 2.2 percent after 2.4 percent increase in the previous quarter.

Labor cost growth is more likely to be stable in the coming quarters, given the loss of momentum in the economy and the evidence from business surveys that the labor market is no longer tightening, Andrew Kenningham, an economist at Capital Economics, said.