16 March 2018
2018- n° 65In Q4 2017, the wages and salary costs increased by 0.5%, the total labour cost index
increased by 0.6% Labor cost index in industry, construction and services - fourth quarter 2017
In the fourth quarter of 2017, the labour cost index (LCI) - wages and salaries in the non-farm business sector accelerated slightly (+0.5% quarter on quarter after +0.3% in Q3 2017–seasonally adjusted data). Year on year, it rose by 2.0%, a slightly larger increase than in the third quarter (+1.8%) and the strongest since 2014. The average working time slowed down compared to the third quarter (0.0% after +0.3% y-o-y).
- The wages and salary costs increased by 0.5%
- Wages slowed down in industrial activities but rose in services and construction activities
- Slight downward revision of LCI – wages and salary in Q3 2017
- The total labour cost index increased by 0.6%
- Downward revision of LCI – total labour cost in Q3 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.
- Hirings after 1st July 2017 are no longer entitled to the hiring premium measure in SMEs.
The wages and salary costs increased by 0.5%
In the fourth quarter of 2017, the labour cost index (LCI) - wages and salaries in the non-farm business sector accelerated slightly (+0.5% quarter on quarter after +0.3% in Q3 2017–seasonally adjusted data). Year on year, it rose by 2.0%, a slightly larger increase than in the third quarter (+1.8%) and the strongest since 2014. The average working time slowed down compared to the third quarter (0.0% after +0.3% y-o-y).
graphiqueGraph1 – LCI - wages and salaries: Year-on-year changes
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Wages slowed down in industrial activities but rose in services and construction activities
In Q4 2017, wages in industrial activities slowed slightly down quarter on quarter (+0.2% after +0.3% in Q3 2017). Year on year, they were less dynamic: +1.9% after +2.3% in the third quarter.
Wages in services activities grew faster over the quarter (+0.6% after +0.2%) and over the year (+1.9 % after +1.5 %). In comparison to the previous quarter, wages rose again in transportation and storage and accelerated sharply in Information and commuication and in finance and insurance activities.
In construction activities, wages increased at a slightly faster pace on the quarter (+1.0% after +0.8%) and more strongly over the year (+3.5% after +2.6%), reaching the strongest annual growth in seven years.
tableauTable1 – LCI - wages & salaries
| Quarterly variations (%) | Annual variations (%) | |||
|---|---|---|---|---|
| Q3-2017 | Q4-2017 | Q3-2017 | Q4-2017 | |
| Industry | 0.3 | 0.2 | 2.3 | 1.9 |
| Mining and quarrying | –0.5 | 0.5 | 1.4 | 1.6 |
| Manufacturing | 0.3 | 0.2 | 2.3 | 1.9 |
| Electricity, gas, steam and air conditioning supply | 0.7 | 0.1 | 3.3 | 2.7 |
| Water supply; sewerage, waste management and remediation activities | 0.2 | 0.4 | 2.1 | 2.0 |
| Services | 0.2 | 0.6 | 1.5 | 1.9 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.3 | 0.5 | 2.1 | 1.8 |
| Transportation and storage | –0.5 | 0.2 | 0.7 | 0.9 |
| Accommodation and food service activities | 0.5 | 0.7 | 1.3 | 1.4 |
| Information and communication | 0.4 | 1.1 | 1.8 | 3.5 |
| Financial and insurance activities | 0.2 | 1.0 | 2.4 | 2.8 |
| Real estate activities | 1.0 | 0.8 | 4.0 | 3.6 |
| Professional, scientific and technical activities | 0.5 | 0.6 | 2.5 | 2.7 |
| Administrative and support service activities | 0.3 | 0.7 | 0.8 | 1.5 |
| Construction | 0.8 | 1.0 | 2.6 | 3.5 |
| TOTAL | 0.3 | 0.5 | 1.8 | 2.0 |
- Scope: non-farmbusiness sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Slight downward revision of LCI – wages and salary in Q3 2017
The Q3 2017 quarterly variation in LCI - wages and salary in the non-farm business sector has been revised downward by 0.1 percentage point as well as the year-over-year variation.
The total labour cost index increased by 0.6%
In the fourth quarter of 2017, total labour cost index in the non-farm business sector accelerated over the quarter: +0.6%, after +0.3% –seasonally adjusted data– as well as over the year (+1.7 % after +1.2 %).
Without tax credit for encouraging competitiveness and jobs (CICE), the rise would have been stronger (+2.1%). The rate of CICE has indeed been raised by 1 percentage point in metropolitan France since 1st January 2017.
graphiqueGraph2 – 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 in Q3 2017
The Q3 quarter-on-quarter and year-on-year variation in total labour cost index in the non-farm business sector have been revised downward by 0.1 percentage point.
tableauTable2 – LCI - total labor cost
| Quarterly variations (%) | Annual variations (%) | |||
|---|---|---|---|---|
| Q3-2017 | Q4-2017 | Q3-2017 | Q4-2017 | |
| Industry | 0.3 | 0.2 | 1.9 | 1.6 |
| Mining and quarrying | –0.5 | 0.6 | 1.3 | 1.4 |
| Manufacturing | 0.3 | 0.2 | 1.9 | 1.6 |
| Electricity, gas, steam and air conditioning supply | 0.6 | 0.2 | 3.1 | 2.5 |
| Water supply; sewerage, waste management and remediation activities | 0.3 | 0.6 | 1.6 | 1.7 |
| Services | 0.2 | 0.7 | 1.0 | 1.6 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.4 | 0.7 | 1.4 | 1.4 |
| Transportation and storage | –0.6 | 0.3 | 0.0 | 0.4 |
| Accommodation and food service activities | 0.6 | 1.0 | 0.6 | 1.2 |
| Information and communication | 0.4 | 1.2 | 1.5 | 3.3 |
| Financial and insurance activities | 0.1 | 1.1 | 2.2 | 2.6 |
| Real estate activities | 1.0 | 1.0 | 3.9 | 3.6 |
| Professional, scientific and technical activities | 0.5 | 0.6 | 2.1 | 2.5 |
| Administrative and support service activities | 0.4 | 0.9 | –0.2 | 1.2 |
| Construction | 0.8 | 1.1 | 2.2 | 3.3 |
| TOTAL | 0.3 | 0.6 | 1.2 | 1.7 |
- Scope: non-farm business sector excluding services to households
- Sources: ACOSS, DARES, INSEE
tableauTable3 – LCI - total labor cost (without CICE)
| Quarterly variations (%) | Annual variations (%) | |||
|---|---|---|---|---|
| Q3-2017 | Q4-2017 | Q3-2017 | Q4-2017 | |
| Industry | 0.3 | 0.3 | 2.3 | 2.0 |
| Mining and quarrying | –0.5 | 0.7 | 1.8 | 1.9 |
| Manufacturing | 0.3 | 0.3 | 2.3 | 2.0 |
| Electricity, gas, steam and air conditioning supply | 0.4 | 0.3 | 3.3 | 2.7 |
| Water supply; sewerage, waste management and remediation activities | 0.2 | 0.6 | 2.1 | 2.1 |
| Services | 0.2 | 0.8 | 1.4 | 2.0 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.4 | 0.7 | 1.9 | 2.0 |
| Transportation and storage | –0.6 | 0.4 | 0.5 | 1.0 |
| Accommodation and food service activities | 0.6 | 1.0 | 1.2 | 1.8 |
| Information and communication | 0.4 | 1.2 | 1.8 | 3.6 |
| Financial and insurance activities | 0.1 | 1.1 | 2.4 | 2.8 |
| Real estate activities | 1.0 | 1.1 | 4.2 | 3.9 |
| Professional, scientific and technical activities | 0.5 | 0.7 | 2.4 | 2.8 |
| Administrative and support service activities | 0.4 | 0.9 | 0.4 | 1.8 |
| Construction | 0.8 | 1.2 | 2.8 | 3.8 |
| TOTAL | 0.3 | 0.7 | 1.7 | 2.1 |
- Scope: non-farm business sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Documentation
Methodological Note (pdf,132 Ko)
Supplementary Methodological Note SA-WDA (pdf,257 Ko)
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