19 September 2014

2014- n° 215

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

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.

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.

As in the 1^st 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 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%.

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

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).

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.