In 2022, the average hourly labour costs in the whole economy were estimated to be €30.5 in the EU and €34.3 in the euro area, up compared with €29.0 and €32.8, respectively, in 2021. However, Croatia is languishing at the bottom of the hourly labour cost in the EU with 12.1 euro.

Total Labour Costs refer to the total expenditure borne by employers in order to employ staff. They cover wage and non-wage costs minus subsidies.

The average hourly labour costs mask significant gaps between EU countries, with the lowest hourly labour costs recorded in Bulgaria (€8.2) and Romania (€9.5), and the highest in Luxembourg (€50.7), Denmark (€46.8) and Belgium (€43.5).

Photo - Eurostat 

Hourly labour costs in industry were €30.7 in the EU and €36.6 in the euro area. In construction, they were €27.3 and €30.8, respectively. In services, hourly labour costs were €30.2 in the EU and €33.3 in the euro area. In the mainly non-business economy (excluding public administration), they were €31.3 and €34.8 respectively.

The two main components of labour costs are wages & salaries and non-wage costs (e.g. employers' social contributions).

And with an hourly price of 12.1 euros, which includes state benefits, Croatia is near the bottom of Europe. Apart from Bulgaria and Romania, only Hungary is behind us with hourly costs of 10.7 euros.