In Q2 2014, the labor cost index - wages and salaries increased by 0.2% and the labor cost index - total labor cost increased by 0.3%Labor cost index in industry, construction and services - 2nd Quarter 2014

In the second quarter of 2014, the labor cost index (LCI) - wages & salaries for the business economy slowed down (+0.2% after +0.5%) in seasonally ad-justed data. In the second quarter of 2014, the labor cost index (LCI) - total labor cost for the business economy in-creased by 0.3% in seasonnally adjusted data, after a decrease of 0.4% in the first quarter.

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. The rate of the CICE has increased from 4 % to 6 % from the 1 st January of 2014. In Q2 2014, for business economy (excluding agriculture), the year-on-year changes of the labor cost index – total labor cost (+1.0%) is 0.9 points lower than what it would have been without CICE (+1.9%). The CICE has no impact on Q2 2014 quaterly variation nor on LCI – wages & salaries.

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

In the second quarter of 2014, the labor cost index (LCI) - wages & salaries for the business economy slowed down (+0.2% after +0.5%) in seasonally adjusted data. In year-on-year changes, the LCI - wages & salaries increased by 1.7% after +2.4%. Work hours are constants 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

As in the 1st quarter, wages increased by 0.6% in industrial activities, drived by manufacturing industry. In electicity and gas, wages rised (+2.5% after 0.9%). On the contrary, wages decreased in mining and quarrying industry (-1.6% after +1.8%).

In year-on-year changes, wages in industrial activities slowed down slighly (+1.9% after +2.3%).

Wages slowed down in services and decreased in construction

Wages increased by 0.2% in services after +0.5% in the first quarter of 2014. Wages decreased in administrative and support services (-0.3% after -0.1%) and slowed down in accommodation and food service activities (+0.7% after +1.1%). In year-on-year changes, wages raised by 1.7% in services (after 2.3%). In construction, wages decreased (-0.7% after +0.3%). In year-on-year changes, wages slowed down by 1.0% after 2.5%.

tableauSSangl – LCI - wages & salaries

SA - base 100 in 2008
LCI - wages & salaries
Quarterly changes (%) Annual changes (%)
Q1-14 Q2-14 Q1-14 Q2-14
Industrial activities 0.6 0.6 2.3 1.9
Mining and quarrying 1.8 –1.6 2.8 1.2
Manufacturing 0.6 0.5 2.6 2.0
Electricity, gas, steam and air conditioning supply 0.9 2.5 0.0 1.0
Water supply; sewerage, waste management and remediation activities 0.3 0.2 1.0 0.6
Services 0.5 0.2 2.3 1.7
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.5 0.5 2.1 1.7
Transportation and storage 0.0 0.4 1.3 1.4
Accommodation and food service activities 1.1 0.7 2.6 2.6
Information and communication 0.4 0.6 1.9 2.2
Financial and insurance activities 1.5 –0.6 4.0 1.7
Real estate activities 0.3 0.8 2.6 2.8
Professional, scientific and technical activities 0.8 0.1 2.5 1.8
Administrative and support service activities –0.1 –0.3 2.6 0.7
Construction 0.3 –0.7 2.5 1.0
TOTAL 0.5 0.2 2.4 1.7
  • Sources: Acoss, Dares, Insee

Small upward revision

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

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

In the second quarter of 2014, the labor cost index (LCI) - total labor cost for the business economy increased by 0.3% in seasonnally adjusted data, after a decrease of 0.4% in the first quarter.

In year-on-year changes, the LCI - total labor cost slowed down in the second quarter (+1.0% after +1.7%). Without the tax credit for encouraging competitiveness and jobs (CICE), the LCI - total labor cost would have also slowed down (+1.9% after +2.6% in year-on-year changes).

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

  • Sources : Acoss, Dares, Insee

Upward revision of Q1 2014 LCI – total labor cost

The change of labor cost index (LCI) – total labor cost in the first quarter of 2014 is revised upward by 0.1 point in quarterly variations. Year-on-year figures do not change.

tableauSCangl – LCI - total labor cost

SA - base 100 in 2008
LCI - total labor cost
Quarterly changes (%) Annual changes (%)
Q1-14 Q2-14 Q1-14 Q2-14
Industrial activities –0.3 0.7 1.7 1.2
Mining and quarrying 0.8 –1.6 1.9 0.5
Manufacturing –0.4 0.5 1.9 1.3
Electricity, gas, steam and air conditioning supply 0.4 2.5 –0.4 0.6
Water supply; sewerage, waste management and remediation activities –0.9 0.2 0.2 –0.2
Services –0.5 0.3 1.6 1.0
Wholesale and retail trade; repair of motor vehicles and motorcycles –0.9 0.6 1.3 0.9
Transportation and storage –1.2 0.5 0.3 0.4
Accommodation and food service activities –0.4 0.9 1.5 1.5
Information and communication –0.2 0.6 1.5 1.8
Financial and insurance activities 1.1 –0.6 3.7 1.3
Real estate activities –1.0 0.9 2.0 2.2
Professional, scientific and technical activities 0.1 0.1 2.0 1.4
Administrative and support service activities –1.2 –0.3 1.7 –0.4
Construction –0.8 –0.6 1.6 0.3
TOTAL –0.4 0.3 1.7 1.0
  • Sources: Acoss, Dares, Insee

– LCI - total labor cost (without CICE)

SA - base 100 in 2008
LCI - total labor cost (without CICE)
Quarterly changes (%) Annual changes (%)
Q1-14 Q2-14 Q1-14 Q2-14
Industrial activities 0.6 0.7 2.6 2.1
Mining and quarrying 1.8 –1.6 2.9 1.5
Manufacturing 0.5 0.5 2.8 2.2
Electricity. gas. steam and air conditioning supply 0.9 2.5 0.1 1.1
Water supply; sewerage. waste management and remediation activities 0.1 0.2 1.2 0.8
Services 0.4 0.3 2.6 1.9
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.1 0.6 2.4 2.0
Transportation and storage –0.1 0.5 1.4 1.5
Accommodation and food service activities 1.0 0.9 2.9 2.9
Information and communication 0.4 0.6 2.1 2.4
Financial and insurance activities 1.5 –0.6 4.1 1.8
Real estate activities –0.1 0.9 2.9 3.1
Professional. scientific and technical activities 0.8 0.1 2.6 2.0
Administrative and support service activities 0.0 –0.3 2.9 0.8
Construction 0.3 –0.6 2.8 1.4
TOTAL 0.5 0.3 2.6 1.9
Sources: Acoss. Dares. Insee