Monday June 21, 2021

Labour costs increase in 2021 Q1

Published : 09 Jun 2021, 23:54

  DF Report

DF File Photo.

Private sector labour costs increased by 3.2 per cent in January to March 2021 compared to the respective period of the year before, according to Statistics Finland.

Seasonally adjusted labour costs went up by 2.1 per cent in January to March 2021. There was one less working day in the first quarter of 2021 than in the corresponding period of 2020.

In the Labour Cost Index, a decrease in the number of working days usually has an increasing effect on costs.

In the private sector, labour costs without one-off pay items, such as performance-based bonuses, increased by 2.7 per cent in January to March 2021 compared to the corresponding quarter one year ago. Over the same period, the index of wage and salary earnings for the private sector went up by 2.0 per cent.

In the central government sector, the cost of an hour worked increased by 2.1 per cent in January to March 2021 when compared with the respective period of the year before. The year-on-year change in labour costs without one-off pay items was a 2.3 per cent increase. Seasonally adjusted labour costs went up by 2.0 per cent. Over the same quarter, the index of wage and salary earnings in the central government sector went up by 1.5 per cent.

In the local government sector, the cost of an hour worked increased by 3.7 per cent in January to March 2021 when compared with the respective period of the year before. The year-on-year change in labour costs without one-off pay items was a 3.8 per cent increase. Seasonally adjusted labour costs went up by 3.4 per cent. Over the same period, the index of wage and salary earnings in the local government sector went up by 1.6 per cent.

In the private sector, the rise in costs was mainly due to the fact that the number of hours worked decreased more than the wages and salaries subject to preliminary withholding tax.

In the central government sector, the rise in costs was mainly due to the growth in wages and salaries subject to preliminary withholding tax.

Also in the local government sector, the wages and salaries subject to preliminary withholding tax have grown, in addition, the cost of an hour worked is increased by a decrease in the number of hours worked.