SYNTHESIS INE@COVID-19, 16-Nov-2021

November . 16 . 2021 SYNTH SIS IN @ COVID-19 www.ine.pt page 14/16 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt Labour Cost Index rose by 3.8% in the 3 rd quarter In the 3 rd quarter of 2021, on a year-on-year basis: • The Labour Cost Index (LCI), adjusted for working days, increased by 3.8% (-2.7% in the previous quarter); • Wage costs per hour effectively worked rose by 3.4% (-5.1% in the previous quarter). All sectors of activity recorded increases; • Other costs, also per hour effectively worked, grew by 5.3% (+7.0% in the previous quarter). The following contributed to other costs in the 3 rd quarter of 2021: • The increase in employer contributions arising from the progressive reduction of enterprises covered by the simplified layoff scheme in the private sector of the economy; • The reduction in hours worked per employee in the Public Administration . The evolution observed in the LCI also resulted from the combination of the following rates of change: • A 3.0% increase in the average cost per employee; This increase was across all economic activities and much smaller than the increases observed in the previous quarter. The smallest rate of change was recorded in the public sector: 1.1%; • A reduction of 0.7% in the number of hours effectively worked per employee; The only sector where this reduction did not occur was the Services sector. The most intense reduction occurred in Public Administration (4.1%). Labour Cost Index Working days adjusted data (year-on-year rate of change) 3.8% 3.0% -0.7% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 3 rd Q 2016 3 rd Q 2017 3 rd Q 2018 3 rd Q 2019 3 rd Q 2020 3 rd Q 2021 Total Average cost per employee Number of hours effec�vely worked per employee