SYNTHSIS INE@COVID-19, 19 Nov-2020

November . 19 . 2020 SYNTH SIS IN @ COVID-19 www.ine.pt page 14/17 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt The Labour cost index increased by 6.0% The Labour Cost Index (LCI), working days adjusted, increased by 6.0% in the 3 rd quarter of 2020, compared to the same period in 2019 (+14.6% in the previous quarter). This outcome resulted from both: • The average cost per employee: +2.7% (-0.7% in the previous quarter); • The number of hours actually worked per employee: -2.9% (-12.9% in the previous quarter). Labour Cost Index Working days adjusted data (year-on-year rate of change) 6.0% 2.7% -2.9% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 3Q 2015 Total Average cost per employee Hours actually worked per employee 3Q 2016 3Q 2017 3Q 2018 3Q 2019 3Q 2020 16.1% 13.5% 12.4% 12.2% 9.9% 8.8% 8.6% 7.0% 6.8% 5.5% 5.1% 4.1% 3.6% 3.3% 2.8% 2.2% 2.0% 1.9% 1.7% 1.3% 0.7% 0.7% -0.7% -1.7% -2.5% -3.3% -8.6% Portugal Bulgaria Romania Lithuania Hungary Slovenia Spain Slovakia Czechia Poland Germany EU27 Latvia Greece Italy France Belgium Estonia Finland Denmark Croatia Malta Luxembourg Netherlands Sweden Ireland Cyprus Labour Cost Index in the EU countries Working days adjusted data - 1 st quarter 2020 (year-on-year rate of change) The wage costs have increased by 6.2% and the other labour costs also increased by 4.9% vis-à-vis the same period of the previous year. The reduction in hours actually worked in the 2 nd quarter of 2020 was significantly influenced by the implementation of the simplified layoff regime. In the 3 rd quarter, the reduction in hours worked was lower due to the sharp decrease in the number of enterprises covered by that regime. The wage costs and the non-wage costs (per hour actually worked) were lower than those observed in the preceding quarter. The wage costs increased essentially due to the rise in the base wage and the holiday bonus. The other costs increased mainly due to increases in the payment of the corresponding employers’ social contributions. Comparison with the European Union The latest available information by country on the LCI year-on-year rate of change reports to the 2 nd quarter of 2020 and was published by Eurostat on the 15 th of September 2020. In the 2 nd quarter of 2020, the LCI year-on-year rate of change for the European Union (27 countries) was 4.1%. Portugal, at 14.6%, accounted for a year-on-year increase that stood above the European Union average (previously it had been registered as 13.5%, having been revised in the 3 rd quarter of 2020). More information available at: Labour cost index – 3 rd quarter of 2020 (13 November 2020)