16 September 2013

2013- n° 213

In Q2 2013, the labor cost index-total labor costs increased by 1.1% Labor cost index in industry, construction and services - 2nd Quarter 2013

Warning: Since the Q1 2013, the tax credit for encouraging competitiveness and jobs (CICE) was included in the calculation of the labor cost index as a subsidy received by the employer. In Q2 2013, for business economy (excluding agriculture), the year-on-year changes of the labor cost index – total labor cost (+0.5%) is 1.8 points lower than what it would have been without CICE (+2.3%). The LCI – wages & salaries is not impacted.

In the second quarter of 2013, the labor cost index (LCI) - wages & salaries for the business economy accelerated (+1.0%) in seasonally adjusted data. In the first quarter of 2013 the index had increased by 0.1%. In year-on-year changes, the LCI - wages & salaries increased by 2.2%. Hours worked remained stable (0.0% in year-on-year changes).

Wages increased by 1.2% in industry after +0.4% in the first quarter 2013. Particularly, they recovered in the manufacturing sector (+1.2% after +0.2%). In year-on-year changes, wages rised by 2.5% in industry. In the construction sector, they slightly increased in the second quarter 2013 (+0.3%). In year on year changes, they improved at the same pace than the previous quarter (+1.5%).

Wages increased by 1.0% in services in the second quarter 2013 after +0.1%. They accelerated especially in retail trade (+0.9% after +0.1%), administrative activities (+2.2% after +0.2%) and mainly in financial activities (+1.7% after –1.2%). However, they slowed down in transportation and storage (+0.3% after +0.7%). In year on year changes, wages slightly accelerated in services (+2.2% after +1.8%).

The evolution of wages in the first quarter of 2013 is revised upward by 0.1 point in quarterly changes and in year on year changes.

From the 1^st January of 2013, date where it was implemented, the tax credit for encouraging competitiveness and jobs (CICE) is taken into account in the calculation of the LCI – total labor cost as a subsidy received by the employer. In the second quarter of 2013, when incorporating the CICE, the labor cost index (LCI) – total labor cost for the business economy increased by 1.1% (seasonally adjusted data) after -1.9% in the first quarter of 2013.

In year-on-year changes, the labor cost index (LCI) – total labor cost slightly increased (+0.5%). Without the CICE, it would have increased by 2.3% in year on year changes.

Small revision of the index of the first quarter 2013

The evolution of the labor cost index (LCI) – total labor cost in the first quarter of 2013 is revised upward by 0.1 point in year on year changes and remained unchanged in quarterly changes.