In Q4 2016, the labour cost index - wages and salaries increased by 0.4% and the labour cost index - total labour cost increased by 0.3%Labor cost index in industry, construction and services - fourth quarter 2016

In the fourth quarter of 2016, the labour cost index (LCI) - wages and salaries in the non-agricultural market sector accelerated slightly (+0.4% quarter on quarter after +0.2%, in seasonally adjusted data). Year on year, it rose by +1.3%, as much as in Q3 2016. The average working time remained stable after a slight inscrease in the third quarter (+0.1% y-o-y).

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Informations rapides – No 69
Paru le : 03/20/2017

The labour cost index - wages and salaries increased by 0.4%

In the fourth quarter of 2016, the labour cost index (LCI) - wages and salaries in the non-agricultural market sector accelerated slightly (+0.4% quarter on quarter after +0.2%, in seasonally adjusted data). Year on year, it rose by +1.3%, as much as in Q3 2016. The average working time remained stable after a slight inscrease in the third quarter (+0.1% y-o-y).

Graph1 – LCI - wages and salaries: year-on-year changes

  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE

Wages accelerated in industrial activities and in services

In Q4 2016, wages in industrial activities picked up in comparison to the previous quarter (+0.4% after +0.1% in Q3 2016). This development concerned almost every industry. Nevertheless, year on year, they decelerated slightly (+1.3% after 1.5% in the third quarter).

In services, wages accelerated slightly, over a quarter (+0.4% after +0.2%) as over a year (+1.3% after +1.1%). In comparison to the previous quarter, wages increased particularly faster in accomodation and food services and in Financial and insurance activities. However, they slowed down in information-communication.

In construction, wages decelerated

In construction, wages slowed down sharply quarter on quarter (+0.4% after +1.0%) as year on year (+1.8% after +2.6%).

Table1 – LCI - wages & salaries

SA - base 100 in 2012
LCI - wages & salaries
Quarterly variations (%) Annual variations (%)
Q3-16 Q4-16 Q3-16 Q4-16
Industry 0.1 0.4 1.5 1.3
Mining and quarrying 0.8 0.3 1.7 1.6
Manufacturing 0.1 0.4 1.4 1.1
Electricity, gas, steam and air conditioning supply –0.2 0.4 2.9 2.9
Water supply; sewerage, waste management and remediation activities 0.4 0.5 1.4 1.7
Services 0.2 0.4 1.1 1.3
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.3 0.4 1.2 1.4
Transportation and storage 0.1 0.1 1.3 1.0
Accommodation and food service activities 0.2 0.9 0.4 1.1
Information and communication 0.5 0.0 2.0 1.6
Financial and insurance activities 0.3 0.9 1.6 2.1
Real estate activities 0.7 1.1 3.0 3.2
Professional, scientific and technical activities 0.0 0.4 1.8 1.4
Administrative and support service activities 0.3 0.6 –0.1 1.0
Construction 1.0 0.4 2.6 1.8
TOTAL 0.2 0.4 1.3 1.3
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE

Downward revision of LCI – wages and salaries for Q3 2016

The variation in LCI - wages and salaries in the third quarter of 2016 in the non-agricultural market sector excluding services to households has been revised downwards by 0.1 percentage points, quarter on quarter as year on year.

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

In the fourth quarter of 2016, the labour cost index (LCI) - total labour cost in the non-agricultural market sector picked up sligthly in comparison to the previous quarter (+0.3%, after +0.1% in seasonally adjusted data).

Year on year, the LCI - total labour cost increased almost at the same path as in the third quarter (+1.1% after +1.2%). Without the tax credit for encouraging competitiveness and jobs (CICE), the growth would have been virtually the same.

Graph2 – LCI - total labor cost: year-on-year changes

  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE

Downward revision of LCI – total labour cost for Q3 2016

The variation in LCI – total labour cost in the third quarter of 2016 in the non-agricultural market sector has been revised downwards by 0.1 percentage points, quarter on quarter as year on year.

Table2 – LCI - total labor cost

SA - base 100 in 2012
LCI - total labor cost
Quarterly variations (%) Annual variations (%)
Q3-16 Q4-16 Q3-16 Q4-16
Industry 0.1 0.3 1.3 1.1
Mining and quarrying 0.7 0.8 1.8 2.0
Manufacturing 0.1 0.3 1.2 0.9
Electricity, gas, steam and air conditioning supply –0.2 0.4 2.6 2.6
Water supply; sewerage, waste management and remediation activities 0.4 0.4 1.0 1.3
Services 0.1 0.3 0.9 1.0
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.2 0.3 1.2 1.3
Transportation and storage 0.0 0.0 1.0 0.9
Accommodation and food service activities 0.0 0.8 0.3 0.8
Information and communication 0.4 0.0 1.7 1.3
Financial and insurance activities 0.3 0.9 1.2 1.7
Real estate activities 0.7 1.1 3.0 3.1
Professional, scientific and technical activities –0.1 0.3 1.5 1.1
Administrative and support service activities –0.1 0.3 –0.2 0.8
Construction 1.0 0.4 3.2 2.4
TOTAL 0.1 0.3 1.2 1.1
  • Scope: non-agricultural market sector excluding services to households
  • Sources: ACOSS, DARES, INSEE

Table3 – LCI - total labor cost (without CICE)

SA - base 100 in 2012
LCI - total labor cost (without CICE)
Quarterly variations (%) Annual variations (%)
Q3-16 Q4-16 Q3-16 Q4-16
Industry 0.1 0.4 1.3 1.1
Mining and quarrying 0.7 0.8 2.2 2.4
Manufacturing 0.1 0.3 1.2 0.9
Electricity, gas, steam and air conditioning supply –0.2 0.4 2.6 2.6
Water supply; sewerage, waste management and remediation activities 0.4 0.4 1.0 1.3
Services 0.1 0.3 0.9 1.1
Wholesale and retail trade; repair of motor vehicles and motorcycles 0.2 0.3 1.2 1.3
Transportation and storage 0.0 0.0 1.0 0.9
Accommodation and food service activities 0.0 0.8 0.4 0.9
Information and communication 0.4 0.0 1.7 1.3
Financial and insurance activities 0.3 0.9 1.2 1.7
Real estate activities 0.7 1.1 3.0 3.1
Professional, scientific and technical activities –0.1 0.3 1.5 1.1
Administrative and support service activities –0.1 0.3 –0.2 0.9
Construction 1.0 0.4 3.2 2.4
TOTAL 0.1 0.3 1.2 1.2
  • Scope: non-agricultural market sector excluding services to households Sources: ACOSS, DARES, INSEE