In Q3 2014, the labour cost index - wages and salaries remained stable and the labour cost index - total labour cost increased by 0.1%Labor cost index in industry, construction and services - 3rd Quarter 2014

Warning: Since the Q1 2013, the tax credit for encouraging competitiveness and jobs (CICE) was included in the calculation of the labour cost index as a subsidy received by the employer. The rate of the CICE has increased from 4% to 6% from the 1st January of 2014. In Q3 2014, for business economy (excluding agriculture), the year-on-year changes of the labour cost index – total labour cost (+0.6%) is 0.9 points lower than what it would have been without CICE (+1.5%). The CICE has no impact on Q3 2014 quaterly variation nor on LCI – wages & salaries.

Warning: Since the Q1 2013, the tax credit for encouraging competitiveness and jobs (CICE) was included in the calculation of the labour cost index as a subsidy received by the employer. The rate of the CICE has increased from 4% to 6% from the 1 st January of 2014. In Q3 2014, for business economy (excluding agriculture), the year-on-year changes of the labour cost index – total labour cost (+0.6%) is 0.9 points lower than what it would have been without CICE (+1.5%). The CICE has no impact on Q3 2014 quaterly variation nor on LCI – wages & salaries.

The labour cost index - wages & salaries remained stable

In the third quarter of 2014, the labour cost index (LCI) - wages & salaries for the business economy (excluding agriculture) slowed down (+0.0% after +0.3%) in seasonally adjusted data. In year-on-year changes, the LCI - wages & salaries increased by 1.4% after +1.7%. Work hours improved (+0.1% year-on-year).

GraphSSangl – LCI - wages and salaries: year-on-year changes

  • Sources: Acoss, Dares, Insee

Wages decreased by 0.2% in industrial activities

Wages decreased by 0.2% in industrial activities in Q3 2014 (after +0.7%). In electricity and gas, wages declined (-2.4% after +3.3%). Wages remained stable in manufacturing. Wages increased in mining and quarrying industry (+0.6% after -1.7%).

In year-on-year changes, wages in industrial activities slowed down slightly (+1.5% after +1.9%).

Wages slowed down in services but increased in construction

Wages stalled in services (+0.1% after +0.3% in the first second of 2014). Wages decreased in accommodation and food service, in information and communication and in real estate activities. In year-on-year changes, wages decelerated (1.4% after 1.7%). On the contrary, in construction, wages sped up slowly (+0.1% after –0.5%), but slowed down slightly in year-on-year changes (+0.5% after 1.2%).

tableauSSangl – LCI - wages & salaries

SA - base 100 in 2008
LCI - wages & salaries
Quarterly variations (%) Annual variations (%)
Q2-14 Q3-14 Q2-14 Q3-14
Industry 0,7 –0,2 1,9 1,5
Mining and quarrying –1,7 0,6 1,1 0,6
Manufacturing 0,5 0,0 2,0 1,4
Electricity, gas, steam and air conditioning supply 3,3 –2,4 1,2 1,6
Water supply; sewerage, waste management and remediation activities 0,0 0,7 0,3 0,9
Services 0,3 0,1 1,7 1,4
Wholesale and retail trade; repair of motor vehicles and motorcycles 0,6 0,0 1,8 1,5
Transportation and storage 0,4 0,1 1,4 1,2
Accommodation and food service activities 0,7 –0,5 2,5 1,2
Information and communication 0,6 –0,1 2,2 1,1
Financial and insurance activities –0,5 0,6 1,7 2,0
Real estate activities 0,8 –0,9 2,8 1,8
Professional, scientific and technical activities 0,1 0,2 1,7 1,6
Administrative and support service activities –0,3 0,2 0,7 1,1
Construction –0,5 0,1 1,2 0,5
TOTAL 0,3 0,0 1,7 1,4
  • Sources: Acoss, Dares, Insee
  • Field: non-agricultural market sector excluding household services

The evolution of wages and salaries during the second quarter of 2014 is revised by +0.1 point in quarter-to-quarter changes.

The labour cost index - total labour cost increased by 0.1%

In the third quarter of 2014, the labour cost index (LCI) - total labour cost for the business economy increased by 0.1% in seasonnally adjusted data, after a rise by 0.3% in the second quarter.

In year-on-year changes, the LCI - total labour cost has slowed down in the third quarter (+0.6% after +1.0%). Without the tax credit for encouraging competitiveness and jobs (CICE), the LCI - total labour cost would have also slowed down (+1.5% after +1.9% in year-on-year changes).

GraphSCangl – LCI - total labour cost: year-on-year changes

  • Sources: Acoss, Dares, Insee

No revision of Q1 2014 LCI – total labour cost

The change of labour cost index (LCI) – total labour cost in the second quarter of 2014 is not revised neither in quarterly variations nor in year-on-year changes.

tableauSCangl – LCI - total labour cost

SA - base 100 in 2008
LCI - total labour cost
Quarterly variations (%) Annual variations (%)
Q2-14 Q3-14 Q2-14 Q3-14
Industry 0,7 –0,1 1,2 0,7
Mining and quarrying –1,7 0,6 0,4 –0,2
Manufacturing 0,5 0,0 1,3 0,7
Electricity, gas, steam and air conditioning supply 3,3 –2,4 0,8 1,1
Water supply; sewerage, waste management and remediation activities 0,0 0,8 –0,6 0,1
Services 0,3 0,1 0,9 0,6
Wholesale and retail trade; repair of motor vehicles and motorcycles 0,6 0,1 1,0 0,6
Transportation and storage 0,5 0,2 0,4 0,2
Accommodation and food service activities 0,8 –0,5 1,2 –0,4
Information and communication 0,6 –0,1 1,8 0,6
Financial and insurance activities –0,5 0,6 1,3 1,6
Real estate activities 0,9 –0,9 2,1 1,1
Professional, scientific and technical activities 0,1 0,2 1,3 1,1
Administrative and support service activities –0,3 0,2 –0,5 0,0
Construction –0,4 0,3 0,4 –0,3
TOTAL 0,3 0,1 1,0 0,6
  • Sources: Acoss, Dares, Insee
  • Field: non-agricultural market sector excluding household services

– LCI - total labour cost (without CICE)

SA - base 100 in 2008Sources: Acoss, Dares, Insee
LCI - total labour cost (without CICE)
Quarterly variations (%) Annual variations (%)
Q2-14 Q3-14 Q2-14 Q3-14
Industry 0,7 -0,1 2,1 1,6
Mining and quarrying -1,7 0,6 1,4 0,8
Manufacturing 0,5 0,0 2,2 1,6
Electricity, gas, steam and air conditioning supply 3,3 -2,4 1,4 1,7
Water supply; sewerage, waste management and remediation activities 0,0 0,8 0,4 1,1
Services 0,3 0,1 1,8 1,5
Wholesale and retail trade; repair of motor vehicles and motorcycles 0,6 0,1 2,1 1,7
Transportation and storage 0,5 0,2 1,5 1,2
Accommodation and food service activities 0,8 -0,5 2,6 1,0
Information and communication 0,6 -0,1 2,3 1,2
Financial and insurance activities -0,5 0,6 1,8 2,1
Real estate activities 0,9 -0,9 3,0 2,0
Professional, scientific and technical activities 0,1 0,2 1,9 1,7
Administrative and support service activities -0,3 0,2 0,8 1,2
Construction -0,4 0,3 1,5 0,8
TOTAL 0,3 0,1 1,9 1,5
  • Field: non-agricultural market sector excluding household services