In Q4 2013, the labor cost index-total labor costs sped up slightlyLabor cost index in industry, construction and services - 4th Quarter 2013

In the fourth quarter of 2013, the labor cost index (LCI) - wages & salaries for the business economy sped up slightly (+0.5%) in seasonally adjusted data. In the third quarter of 2013 the index had increased by 0.3%. In year-on-year changes, the LCI - wages & salaries increased by 2.0%, as in the previous quarter. Hours worked slightly decreased (-0.1% in year-on-year changes).

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 Q4 2013, for business economy (excluding agriculture), the year-on-year changes of the labor cost index – total labor cost (+0.4%) is 1.8 points lower than what it would have been without CICE (+2.2%). The LCI – wages & salaries is not impacted.

The labor cost index - wages & salaries

In the fourth quarter of 2013, the labor cost index (LCI) - wages & salaries for the business economy sped up slightly (+0.5%) in seasonally adjusted data. In the third quarter of 2013 the index had increased by 0.3%. In year-on-year changes, the LCI - wages & salaries increased by 2.0%, as in the previous quarter. Hours worked slightly decreased (-0.1% in year-on-year changes).

GraphSSangl – LCI - wages & salaries : Year-on-year changes

Wages increased in industry but decreased in construction

Wages increased by 0.4% in industry after remained stable in the third quarter 2013. Particularly, they slightly accelerated in the manufacturing sector (+0.5% after +0.3%). In year-on-year changes, wages raised by 2.2% in industry. In the construction sector, they decreased during the fourth quarter 2013 (+0.7% after +0.9%). However, in year on year changes, they increased slightly: +2.1% after +1.8%.

Wages increased by 0.5% in services

Wages increased by 0.5% in services during the fourth quarter 2013 (after +0.3% the previous quarter). They sped up especially in transportation and storage (+0.7% after +0.2%). However, they decreased in accommodation and food services (-0.2% after +0.7%). In year on year changes, wages sped up very slightly in services (+1.9% after +1.8%).

Tableau 1 – LCI - wages & salaries

SA - base 100 in 2008
LCI - wages & salaries
Quarterly changes (%) Annual changes (%)
Q3-13 Q4-13 Q3-13 Q4-13
Industry 0.0 0.4 2.5 2.2
Mining and quarrying 1.0 0.5 2.6 2.2
Manufacturing 0.3 0.5 2.7 2.3
Electricity, gas, steam and air conditioning supply –3.8 0.1 –0.1 0.4
Water supply; sewerage, waste management and remediation activities 0.2 –0.2 1.2 1.0
Services 0.3 0.5 1.8 1.9
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.2 0.4 1.7 1.7
Transportation and storage 0.2 0.7 1.8 1.9
Accommodation and food service activities 0.7 –0.2 1.9 1.5
Information and communication 1.1 0.4 1.8 2.0
Financial and insurance activities 0.4 0.1 2.1 1.0
Real estate activities –0.2 1.9 1.7 2.7
Professional, scientific and technical activities 0.2 0.1 1.4 1.2
Administrative and support service activities 0.0 1.5 1.6 3.5
Construction 0.9 0.7 1.8 2.1
TOTAL 0.3 0.5 2.0 2.0
  • Sources: Acoss, Dares, Insee

Small upward revision

The evolution of wages during the third quarter of 2013 is revised upwards by 0.1 point in quarterly variation but remained unchanged in annual variation.

The labor cost index – total labor cost

From the 1st January of 2013, the time when it was implemented, the tax credit for encouraging competitiveness and jobs (CICE) has been taken into account in the computation of the LCI – total labor cost as a subsidy received by the employer. In the fourth quarter of 2013, when incorporating the CICE, the labor cost index (LCI) – total labor cost for the business economy increased by 0.6% (seasonally adjusted data) after +0.4% in the third quarter of 2013.

In year-to-year changes, the growth of the labor cost index (LCI) – total labor cost remained unchanged (+0.4%). Without the CICE, it would have increased by 2.2% in year-on-year changes.

GraphSCangl – LCI - total labor cost: 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 third quarter of 2013 is revised upwards by 0.1 point in quarterly variation. The year-on-year variation is revised downwards by 0.1 point.

Tableau 4 – LCI - total labor cost

SA - base 100 in 2008
LCI - total labor cost
Quarterly changes (%) Annual changes(%)
Q3-13 Q4-13 Q3-13 Q4-13
Industry 0.1 0.5 1.0 0.6
Mining and quarrying 1.2 0.6 1.0 0.4
Manufacturing 0.5 0.6 1.2 0.6
Electricity, gas, steam and air conditioning supply –3.7 0.1 –1.1 –0.6
Water supply; sewerage, waste management and remediation activities 0.4 0.2 –0.6 –0.8
Services 0.5 0.7 0.3 0.3
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.4 0.8 –0.1 –0.1
Transportation and storage 0.4 0.9 –0.1 0.1
Accommodation and food service activities 1.1 –0.2 –0.4 –1.0
Information and communication 1.2 0.4 0.8 1.1
Financial and insurance activities 0.5 0.2 1.3 0.2
Real estate activities 0.0 2.4 0.3 1.3
Professional, scientific and technical activities 0.3 0.2 0.3 0.1
Administrative and support service activities 0.0 1.4 –0.8 1.1
Construction 1.2 0.8 0.0 0.2
TOTAL 0.4 0.6 0.4 0.4
  • Sources: Acoss, Dares, Insee

Tableau 5 – LCI - total labor cost without CICE

SA - base 100 in 2008
LCI - total labor cost without CICE
Quarterly changes (%) Annual changes (%)
Q3-13 Q4-13 Q3-13 Q4-13
Industry 0.1 0.5 2.8 2.3
Mining and quarrying 1.2 0.6 3.0 2.3
Manufacturing 0.5 0.6 3.0 2.4
Electricity, gas, steam and air conditioning supply –3.7 0.1 –0.1 0.4
Water supply; sewerage, waste management and remediation activities 0.4 0.2 1.4 1.2
Services 0.5 0.7 2.0 2.1
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.4 0.8 2.0 2.0
Transportation and storage 0.4 0.9 2.0 2.2
Accommodation and food service activities 1.1 –0.2 2.3 1.8
Information and communication 1.2 0.4 1.9 2.1
Financial and insurance activities 0.5 0.2 2.2 1.1
Real estate activities 0.0 2.4 2.0 3.0
Professional, scientific and technical activities 0.3 0.2 1.5 1.3
Administrative and support service activities 0.0 1.4 1.7 3.6
Construction 1.2 0.8 2.3 2.5
TOTAL 0.4 0.6 2.2 2.2
  • Sources: Acoss, Dares, Insee