In 2014Q4 the labour cost index - wages and salaries increased by 0.2% and the labour cost index - total labour cost increased by 0.3%Labor cost index in industry, construction and services - 4th Quarter 2014

In the fourth quarter of 2014, the labour cost index (LCI) - wages & salaries slighly increased in the non-agricultural market sector excluding household services (+0.2% after +0.1%) in seasonally adjusted data. In year-on-year changes, the LCI - wages & salaries decelerated by +1.2% after +1.4%. Work hours increased slightly (+0.2% in year-on-year changes).

Warning: The tax credit for encouraging competitiveness and jobs (CICE) has been included since 2013Q1 in the computation of the labour cost index as a subsidy received by the employer. The rate of the CICE increased from 4% to 6% on January 1st, 2014. In 2014Q4, the year-on-year changes of the labour cost index (LCI) – total labour cost in the non-agricultural market sector excluding household services is 0.9 point lower (+0.4%) than what it would have been without CICE (+1.3%). The CICE has no impact on 2014Q4 quarterly variation nor on LCI – wages & salaries.

The labour cost index - wages & salaries increased by 0.2%

In the fourth quarter of 2014, the labour cost index (LCI) - wages & salaries slighly increased in the non-agricultural market sector excluding household services (+0.2% after +0.1%) in seasonally adjusted data. In year-on-year changes, the LCI - wages & salaries decelerated by +1.2% after +1.4%. Work hours increased slightly (+0.2% in year-on-year changes).

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

  • Sources: ACOSS, DARES, INSEE

Wages increased by 0.6% in industrial activities

Wages increased by 0.6% in industrial activities in 2014Q4 (after –0.1% in 2014Q3). Wages rose in electricity and gas (+0.2% after –2.6%). Wages accelerated in manufacturing (+0.7% after +0.1%) as well as in mining and quarrying industry (+1.5% after +0.6%). In year-on-year changes, wages in industrial activities accelerated slightly (+1.8% after +1.5%).

Wages continued to increase moderately in services and accelerated in construction

Wages increased in services (+0.1%) as in the previous quarter but diminished in financial and insurance activities and in professional, scientific and technical activities. In year-on-year changes, wages decelerated (+1.0% after +1.4%). In construction, wages sped up (+0.4% after +0.2%). They rose in year-on-year changes (+0.7%) as in 2014Q3.

tableauSSangl – LCI - wages & salaries

SA - base 100 in 2008
LCI - wages & salaries
Quarterly variations (%) Annual variations (%)
Q3-14 Q4-14 Q3-14 Q4-14
Industry –0.1 0.6 1.5 1.8
Mining and quarrying 0.6 1.5 0.8 2.5
Manufacturing 0.1 0.7 1.5 1.8
Electricity, gas, steam and air conditioning supply –2.6 0.2 1.4 1.3
Water supply; sewerage, waste management and remediation activities 0.8 –0.3 1.1 0.8
Services 0.1 0.1 1.4 1.0
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.0 0.2 1.5 1.3
Transportation and storage 0.2 0.2 1.3 1.0
Accommodation and food service activities 0.0 0.0 1.6 1.7
Information and communication –0.1 0.2 1.1 1.0
Financial and insurance activities 0.4 –0.2 1.9 1.2
Real estate activities –0.6 1.5 1.9 2.2
Professional, scientific and technical activities 0.3 –0.3 1.9 0.7
Administrative and support service activities –0.1 0.2 0.8 –0.1
Construction 0.2 0.4 0.7 0.7
TOTAL 0.1 0.2 1.4 1.2
  • Sources: ACOSS, DARES, INSEE
  • Field: non-agricultural market sector excluding household services

Small upward revision of 2014Q3 LCI – total labour cost

The evolution of wages and salaries during the third quarter of 2014 is revised by +0.1 point in quarter-to-quarter changes but this evolution is not revised in year-on-year changes.

The labour cost index - total labour cost increased by 0.3%

In the fourth quarter of 2014, the labour cost index (LCI) - total labour cost in the non-agricultural market sector excluding household services increased by 0.3% in seasonnally adjusted data, after a rise of +0.1% in the third quarter.

In year-on-year changes, the LCI - total labour cost slowed down (+0.4% after +0.6%). Without the tax credit for encouraging competitiveness and jobs (CICE), the LCI - total labour cost would have also slowed down (+1.3% after +1.6% in year-on-year changes).

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

  • Sources: ACOSS, DARES, INSEE

No revision of 2014Q3 LCI – total labour cost

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

tableauSCangl – LCI - total labor cost

SA - base 100 in 2008
LCI - total labor cost
Quarterly variations (%) Annual variations (%)
Q3-14 Q4-14 Q3-14 Q4-14
Industry 0.0 0.6 0.8 1.0
Mining and quarrying 0.7 1.6 0.0 1.6
Manufacturing 0.1 0.6 0.8 1.0
Electricity, gas, steam and air conditioning supply –2.6 0.2 1.0 1.0
Water supply; sewerage, waste management and remediation activities 0.9 –0.2 0.2 –0.2
Services 0.1 0.1 0.6 0.2
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.1 0.3 0.7 0.4
Transportation and storage 0.3 0.3 0.3 0.0
Accommodation and food service activities 0.1 0.2 0.0 0.5
Information and communication –0.1 0.2 0.6 0.6
Financial and insurance activities 0.5 –0.3 1.5 0.8
Real estate activities –0.5 1.6 1.2 1.4
Professional, scientific and technical activities 0.3 –0.3 1.4 0.2
Administrative and support service activities –0.1 0.3 –0.4 –1.2
Construction 0.4 0.5 –0.2 –0.2
TOTAL 0.1 0.3 0.6 0.4
  • Sources: ACOSS, DARES, INSEE
  • Field: non-agricultural market sector excluding household services

– LCI - total labor cost (without CICE)

SA - base 100 in 2008Sources: ACOSS, DARES, INSEE
LCI - total labor cost (without CICE)
Quarterly variations (%) Annual variations (%)
Q3-14 Q4-14 Q3-14 Q4-14
Industry 0.0 0.6 1.7 1.9
Mining and quarrying 0.7 1.6 1.0 2.6
Manufacturing 0.1 0.6 1.7 1.9
Electricity, gas, steam and air conditioning supply -2.6 0.2 1.5 1.6
Water supply; sewerage, waste management and remediation activities 0.9 -0.2 1.2 0.8
Services 0.1 0.1 1.5 1.1
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.1 0.3 1.7 1.4
Transportation and storage 0.3 0.3 1.4 1.1
Accommodation and food service activities 0.1 0.1 1.4 1.9
Information and communication -0.1 0.2 1.1 1.1
Financial and insurance activities 0.5 -0.3 2.0 1.3
Real estate activities -0.5 1.6 2.1 2.3
Professional, scientific and technical activities 0.3 -0.3 2.0 0.8
Administrative and support service activities -0.1 0.3 0.9 0.0
Construction 0.4 0.5 0.9 0.9
TOTAL 0.1 0.3 1.6 1.3
  • Field: non-agricultural market sector excluding household services