15 September 2017
2017- n° 244In Q2 2017, the labour cost index - wages and salaries as well as the labour cost
index - total labour cost increased by 0.4% Labor cost index in industry, construction and services - second quarter 2017
In the second quarter of 2017, the labour cost index (LCI) - wages and salaries in the non-agricultural market sector slowed down: +0.4% quarter on quarter after +0.7% in Q1 2017 (seasonally adjusted data). Year on year, it rose by 1.7%, a slightly larger increase than in the first quarter (+1.5%). The average working time increased as in the first quarter (+0.2% y-o-y).
- The labour cost index - wages and salaries increased by 0.4%
- Wages slowed down in industrial activities, in services and in construction
- LCI – wages and salaries for Q1 2017 is almost unchanged
- The labour cost index - total labour cost increased by 0.4%
- Slight downward revision of LCI – total labour cost for Q1 2017
Warnings:
- Since 1st January 2017, the rate of the tax credit for encouraging competitiveness and jobs (CICE) in metropolitan France has increased from 6% to 7%. The rate remains at 9% in the overseas deparments.
- The hiring premium measure has been extended to hirings until 30th June 2017.
The labour cost index - wages and salaries increased by 0.4%
In the second quarter of 2017, the labour cost index (LCI) - wages and salaries in the non-agricultural market sector slowed down: +0.4% quarter on quarter after +0.7% in Q1 2017 (seasonally adjusted data). Year on year, it rose by 1.7%, a slightly larger increase than in the first quarter (+1.5%). The average working time increased as in the first quarter (+0.2% y-o-y).
graphiqueGraph1 – LCI - wages and salaries: Year-on-year changes
Wages slowed down in industrial activities, in services and in construction
In Q2 2017, wages in industrial activities slowed slightly quarter on quarter (+0.6% after +0.8% in Q1 2017). However, year on year, they accelerated: +2.0% after 1.7% in the first quarter.
In services also, wages were less dynamic on the quarter (+0.3% after +0.6%). Nevertheless, they grew at a slightly faster pace over the year (+1.5% after +1.4%). In comparison to the previous quarter, wages slowed down especially in finance and insurance activities, real estate, and professional, scientific and technical activities. They stagnated in information and communication. Conversely, wages accelerated sharply in transportation and storage.
In construction, wages increased less markedly on the quarter (+0.4% after +1.0%) but accelerated year on year (+3.1% after +2.4%).
tableauTable1 – LCI - wages & salaries
Quarterly variations (%) | Annual variations (%) | |||
---|---|---|---|---|
Q1-17 | Q2-17 | Q1-17 | Q2-17 | |
Industry | 0.8 | 0.6 | 1.7 | 2.0 |
Mining and quarrying | 0.4 | 1.2 | 2.4 | 3.4 |
Manufacturing | 0.8 | 0.6 | 1.5 | 2.0 |
Electricity, gas, steam and air conditioning supply | 1.4 | –0.1 | 4.3 | 1.9 |
Water supply; sewerage, waste management and remediation activities | 0.4 | 0.9 | 1.9 | 2.5 |
Services | 0.6 | 0.3 | 1.4 | 1.5 |
Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.5 | 0.5 | 1.6 | 1.8 |
Transportation and storage | 0.2 | 1.1 | 0.8 | 1.5 |
Accommodation and food service activities | 0.1 | 0.0 | 0.3 | 1.0 |
Information and communication | 1.8 | –0.1 | 2.9 | 2.0 |
Financial and insurance activities | 1.0 | 0.2 | 1.9 | 1.8 |
Real estate activities | 1.6 | 0.3 | 4.1 | 3.9 |
Professional, scientific and technical activities | 1.2 | 0.3 | 2.1 | 1.9 |
Administrative and support service activities | 0.0 | 0.5 | 0.5 | 1.0 |
Construction | 1.0 | 0.4 | 2.4 | 3.1 |
TOTAL | 0.7 | 0.4 | 1.5 | 1.7 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
LCI – wages and salaries for Q1 2017 is almost unchanged
The quarterly variation in LCI - wages and salaries in the first quarter of 2017 in the non-agricultural market sector is unchanged. The year-over-year variation has been revised downwards by 0.1 percentage points.
The labour cost index - total labour cost increased by 0.4%
In the second quarter of 2017, the labour cost index (LCI) - total labour cost in the non-agricultural market sector rose just slightly more than in the previous quarter: +0.4%, after +0.3% (seasonally adjusted data).
Year on year, the LCI - total labour cost sped up (+1.1% after +0.4%). Without the tax credit for encouraging competitiveness and jobs (CICE), the rise would have been stronger: +1.6%. The rate of CICE has indeed been raised by 1 percentage point in metropolitan France since the 1st January 2017, which is neutral on the Q2 2017 quarter-over-quarter variation but curbed the rise over a year.
graphiqueGraph2 – LCI - total labor cost: Year-on-year changes
Slight downward revision of LCI – total labour cost for Q1 2017
The variation in LCI – total labour cost in the first quarter of 2017 in the non-agricultural market sector has been revised downwards by 0.1 percentage points year over year and quarter over quarter.
tableauTable2 – LCI - total labor cost
Quarterly variations (%) | Annual variations (%) | |||
---|---|---|---|---|
Q1-17 | Q2-17 | Q1-17 | Q2-17 | |
Industry | 0.4 | 0.6 | 0.7 | 1.6 |
Mining and quarrying | 0.1 | 1.2 | 1.8 | 3.3 |
Manufacturing | 0.4 | 0.6 | 0.5 | 1.6 |
Electricity, gas, steam and air conditioning supply | 1.2 | –0.1 | 3.6 | 1.8 |
Water supply; sewerage, waste management and remediation activities | 0.1 | 0.8 | 0.8 | 2.0 |
Services | 0.2 | 0.3 | 0.2 | 0.9 |
Wholesale and retail trade; repair of motor vehicles and motorcycles | –0.1 | 0.5 | 0.2 | 1.0 |
Transportation and storage | –0.3 | 1.1 | –0.3 | 0.8 |
Accommodation and food service activities | –0.5 | 0.3 | –1.2 | 0.5 |
Information and communication | 1.6 | –0.2 | 1.9 | 1.7 |
Financial and insurance activities | 0.9 | 0.2 | 1.1 | 1.6 |
Real estate activities | 1.4 | 0.3 | 3.4 | 3.8 |
Professional, scientific and technical activities | 1.0 | 0.3 | 1.1 | 1.6 |
Administrative and support service activities | –0.5 | 0.3 | –1.2 | –0.2 |
Construction | 0.7 | 0.4 | 1.6 | 2.7 |
TOTAL | 0.3 | 0.4 | 0.4 | 1.1 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
tableauTable3 – LCI - total labor cost (without CICE)
Quarterly variations (%) | Annual variations (%) | |||
---|---|---|---|---|
Q1-17 | Q2-17 | Q1-17 | Q2-17 | |
Industry | 0.8 | 0.6 | 1.1 | 2.0 |
Mining and quarrying | 0.6 | 1.2 | 2.3 | 3.8 |
Manufacturing | 0.8 | 0.6 | 0.9 | 2.0 |
Electricity, gas, steam and air conditioning supply | 1.4 | –0.1 | 3.8 | 2.0 |
Water supply; sewerage, waste management and remediation activities | 0.5 | 0.8 | 1.2 | 2.4 |
Services | 0.6 | 0.3 | 0.6 | 1.3 |
Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.4 | 0.5 | 0.7 | 1.5 |
Transportation and storage | 0.2 | 1.1 | 0.3 | 1.3 |
Accommodation and food service activities | 0.1 | 0.3 | –0.5 | 1.1 |
Information and communication | 1.9 | –0.2 | 2.2 | 1.9 |
Financial and insurance activities | 1.1 | 0.2 | 1.3 | 1.8 |
Real estate activities | 1.7 | 0.3 | 3.7 | 4.1 |
Professional, scientific and technical activities | 1.2 | 0.3 | 1.4 | 1.8 |
Administrative and support service activities | 0.1 | 0.3 | –0.6 | 0.4 |
Construction | 1.2 | 0.4 | 2.2 | 3.3 |
TOTAL | 0.7 | 0.4 | 0.8 | 1.6 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Documentation
Methodological Note (pdf,132 Ko)
Supplementary Methodological Note SA-WDA (pdf,257 Ko)