---
source: Eurostat (European Commission)
url: https://ec.europa.eu/eurostat/web/products-euro-indicators/w/3-17122025-bp
document_type: html
date_retrieved: 2026-03-19
period: Q3 2025 (published Dec 17, 2025)
parent_publication: Labour Cost Index - Euro Indicators
indicators_covered: [Labour Cost Index YoY, Wage Growth YoY, Non-Wage Costs]
note: "Payload referenced Q4 2025 release (2026-03-19) but published Q3 2025 data with matching figures (3.3%, 3.0%). Q4 release scheduled for March 19, 2026."
---

# Labour Cost Index – Third Quarter 2025

**Release Date:** 17 December 2025  
**Reference Period:** Q3 2025  
**Publication:** Eurostat Euro Indicators  

## Overview

In the third quarter of 2025, the hourly labour costs rose by **3.3% in the euro area** and by **3.7% in the EU**, compared with the same quarter of the previous year. These figures are published by Eurostat, the statistical office of the European Union.

The two main components of labour costs are **wages & salaries** and **non-wage costs**.

### Euro Area (Q3 2025 vs Q3 2024)

- **Total hourly labour costs:** +3.3%
- **Hourly wages & salaries:** +3.0%
- **Non-wage costs:** +4.0%

### European Union (Q3 2025 vs Q3 2024)

- **Total hourly labour costs:** +3.7%
- **Hourly wages & salaries:** +3.5%
- **Non-wage component:** +4.2%

## Breakdown by Economic Activity

### Business Economy Highlights

In the third quarter of 2025 compared with the same quarter of the previous year, hourly labour costs in the euro area rose by **3.3% in the business economy**, distributed across sectors as follows:

- **Industry:** +3.3%
- **Construction:** +4.3%
- **Services:** +3.2%

In the EU, hourly labour costs grew by **3.8% in the business economy**, with sector breakdown:

- **Industry:** +3.7%
- **Construction:** +4.7%
- **Services:** +3.7%

### Non-Business Economy

- **Euro area:** +3.1%
- **EU:** +3.4%

## Hourly Wage Costs Across Countries

In the third quarter of 2025 compared with the same quarter of the previous year, the highest increases in hourly wage costs for the whole economy were recorded in:

- **Bulgaria:** +12.4%
- **Lithuania:** +9.7%
- **Croatia:** +9.1%
- **Hungary:** +8.8%

The lowest increases were recorded in:

- **France:** +1.3%
- **Slovenia:** +1.6%
- **Spain:** +2.0%
- **Austria:** +2.1%
- **Italy:** +2.4%

**Malta** recorded a decrease of **-1.4%**.

## Key Data: Nominal Hourly Labour Costs – Whole Economy

| Country | Q3 2024 | Q2 2025 | Q3 2025 | Change (YoY) |
|---------|---------|---------|---------|--------------|
| **Euro area** | 4.7% | 3.9% | **3.3%** | -1.4pp |
| **EU** | 5.2% | 4.4% | **3.7%** | -1.5pp |
| Bulgaria | 12.9% | 13.2% | 12.3% | -0.6pp |
| Germany | 4.6% | 4.3% | 4.0% | -0.6pp |
| France | 3.1% | 1.6% | 1.7% | -1.4pp |
| Spain | 5.2% | 3.7% | 2.1% | -3.1pp |
| Italy | 4.4% | 3.8% | 2.8% | -1.6pp |
| Netherlands | 6.5% | 6.5% | 3.8% | -2.7pp |
| Sweden | 3.4% | 3.8% | 3.3% | -0.1pp |

**Note:** Calendar-adjusted. Wage components shown separately in full tables on source page.

## Business Economy Detail – Wages vs Non-Wage Costs

### Euro Area (Q3 2025)

| Sector | Total | Wages | Non-Wage |
|--------|-------|-------|----------|
| **Total Business** | 3.3% | 3.0% | 4.3% |
| Industry | 3.3% | 2.8% | 4.7% |
| Construction | 4.3% | 3.8% | 5.9% |
| Services | 3.2% | 3.0% | 4.0% |

### EU (Q3 2025)

| Sector | Total | Wages | Non-Wage |
|--------|-------|-------|----------|
| **Total Business** | 3.8% | 3.5% | 4.5% |
| Industry | 3.7% | 3.4% | 4.8% |
| Construction | 4.7% | 4.3% | 5.8% |
| Services | 3.7% | 3.5% | 4.2% |

## Notable Sectoral Trends (EU-wide, Q3 2025)

### Highest Wage Cost Growth

- **S – Other service activities:** +4.5%
- **F – Construction:** +4.3%
- **M – Professional, scientific and technical activities:** +4.3%

### Lowest Wage Cost Growth

- **D – Electricity, gas, steam and air conditioning supply:** +2.5%

### Non-Wage Cost Leaders

- **F – Construction:** +5.8%
- **S – Other service activities:** +5.6%
- **L – Real estate activities:** +5.5%

## Revisions and Methodology

### Data Revisions

Labour Cost Index data are subject to revision, particularly for the latest quarters, when new source data become available.

**Previous Revision (Q2 2025):** Compared with the News Release of 16 September 2025, the annual growth rate of hourly labour costs for the total economy in Q2 2025 was revised:
- **Euro area:** from +3.6% to +3.9%
- **EU:** from +4.0% to +4.4%

### Release Schedule

Eurostat releases **early estimates** for hourly labour costs approximately 50 days after the reference quarter:

- **Q3 2025 early estimates:** 19 November 2025
- **Q4 2025 early estimates:** scheduled 18 February 2026
- **Next full release:** 19 March 2026

### Methods and Definitions

**Labour Cost Index:** A short-term indicator showing the development of hourly labour costs incurred by employers, in **nominal terms** (unadjusted for price changes). Calculated by dividing labour cost in national currency by the number of hours worked (base year = 2020).

**Total Labour Costs (TOT):** Cover wages and salaries plus non-wage costs, less subsidies. Exclude vocational training costs, recruitment costs, and other expenditures.

**Wage and Salary Costs (WAG):** Direct remuneration, bonuses, allowances (cash or in kind), payments to employee savings schemes, payments for non-worked days, and remuneration in kind (food, fuel, company cars, etc.).

**Non-Wage Costs (OTH):** Employers' social contributions plus employment taxes regarded as labour costs, less subsidies intended to refund part or all of the employer's cost of direct remuneration.

### Coverage

Eurostat publishes Labour Cost Index data for **NACE Rev. 2 sections B to S** (whole economy, excluding agriculture, forestry, fishing, activities of households as employers, and extraterritorial organisations).

**Section N** ('Administrative and support service activities') includes temporary employment agencies.

## Geographic Coverage

### Euro Area (EA20)

Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Slovakia, Finland.

### European Union (EU27)

The above plus Bulgaria, Czechia, Denmark, Hungary, Poland, Romania, Sweden.

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## Source Notes

- **Data availability:** Full detailed tables by country, sector, and wage component available in the source page and Eurostat database (dataset: lc_lci_r2_q)
- **Belgium note:** Data not available for Q3 2025 at the time of publication
- **Confidential data:** Marked with 'c' in tables; ':' indicates data not available
- **Next update:** Scheduled for 19 March 2026 (Q4 2025 data release)