14 September 2018
2018- n° 241In Q2 2018, the labour cost index - wages and salaries increased by 0.6%, the total
labour cost index increased by 0.8% Labor cost index in industry, construction and services - second quarter 2018
In the second quarter of 2018, the labour cost index (LCI) - wages and salaries in the non-farm business sector rose on the same pace as the previous quarter (+0.6% quarter on quarter – seasonally adjusted data). Year on year, it rose by 2.1%, a quicker increase than in the first quarter (+1.7%). The average working time remained stable in the first quarter (0.0% y-o-y).
- The wages and salary costs increased by 0.6%
- Wages slowed down in industry, rose steadily in services and increased again in construction
- Slight upward revision of LCI – wages and salary in Q1 2018
- The total labour cost index increased by 0.8%
- Slight downward revision of LCI – total labour cost in Q1 2018
Warnings
- Since 1st January 2018, the rate of the tax credit for encouraging competitiveness and jobs (CICE) in metropolitan France has decreased from 7% to 6%. The rate remains at 9% in the overseas departments.
- Hirings after 1st July 2017 are no longer entitled to the hiring premium measure in SMEs.
The wages and salary costs increased by 0.6%
In the second quarter of 2018, the labour cost index (LCI) - wages and salaries in the non-farm business sector rose on the same pace as the previous quarter (+0.6% quarter on quarter – seasonally adjusted data). Year on year, it rose by 2.1%, a quicker increase than in the first quarter (+1.7%). The average working time remained stable in the first quarter (0.0% 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 industry, rose steadily in services and increased again in construction
In Q2 2018, wages in industry slowed down sharply quarter on quarter (+0.3% after +0.9% in Q1 2018). Year on year, they were a bit less dynamic: +1.8% after +2.0%.
In comparison to the previous quarter, wages grew faster in mining and quarrying and in water supply, sewerage, etc. They slowed down in manufacturing and even dropped in electricity, gas, etc. after a strong increase in the first quarter.
In Q2 2018, wages in services rose on the same pace as in the first quarter (+0.6% quarter on quarter) but accelerated over the year (+2.2% after +1.7%)
Wages in construction rebounded after a decrease in the first quarter (+1.2% after -0.9%).
tableauTable1 – LCI - wages & salaries
| Quarterly variations (%) | Annual variations (%) | |||
|---|---|---|---|---|
| Q1-2018 | Q2-2018 | Q1-2018 | Q2-2018 | |
| Industry | 0.9 | 0.3 | 2.0 | 1.8 |
| Mining and quarrying | 1.5 | 2.8 | 3.4 | 6.0 |
| Manufacturing | 0.8 | 0.6 | 1.9 | 2.0 |
| Electricity, gas, steam and air conditioning supply | 2.7 | –3.4 | 4.4 | 0.1 |
| Water supply; sewerage, waste management and remediation activities | 0.2 | 1.3 | 1.7 | 2.5 |
| Services | 0.6 | 0.6 | 1.7 | 2.2 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.4 | 0.5 | 1.8 | 1.9 |
| Transportation and storage | 0.9 | 0.6 | 1.9 | 1.6 |
| Accommodation and food service activities | 0.4 | 0.1 | 2.1 | 1.8 |
| Information and communication | 0.9 | 0.1 | 2.6 | 2.5 |
| Financial and insurance activities | 0.6 | 0.7 | 2.2 | 2.7 |
| Real estate activities | 0.9 | 0.6 | 2.9 | 3.5 |
| Professional, scientific and technical activities | 0.8 | 0.9 | 1.4 | 2.8 |
| Administrative and support service activities | 0.7 | 1.0 | 1.6 | 2.3 |
| Construction | –0.9 | 1.2 | 1.0 | 2.1 |
| TOTAL | 0.6 | 0.6 | 1.7 | 2.1 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Slight upward revision of LCI – wages and salary in Q1 2018
The Q1 2018 quarterly variation in LCI - wages and salaries in the non-farm business sector has been revised upward by 0.1 percentage points. The year-on-year variation remained unchanged.
The total labour cost index increased by 0.8%
In the second quarter of 2018, the total labour cost index in the non-farm business sector slowed down slightly over the quarter (+0.8%, after +1.0% – seasonally adjusted data) but accelerated over the year (+2.8 % after +2.2 %).
Without tax credit for encouraging competitiveness and jobs (CICE), the rise would have been smaller (+2.4%). The rate of CICE has indeed been lowered by 1 percentage point (from 7% to 6%) in metropolitan France since 1st January 2018.
graphiqueGraph2 – LCI - total labour cost: year-on-year changes
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Slight downward revision of LCI – total labour cost in Q1 2018
The Q1 2018 year-on-year variation in total labour cost index in the non-farm business sector has been revised downward by 0.1 percentage points. The quarter-on-quarter variation remained unchanged.
tableauTable2 – LCI - total labour cost
| Quarterly variations (%) | Annual variations (%) | |||
|---|---|---|---|---|
| Q1-2018 | Q2-2018 | Q1-2018 | Q2-2018 | |
| Industry | 1.3 | 0.4 | 2.5 | 2.4 |
| Mining and quarrying | 2.0 | 3.0 | 3.9 | 6.8 |
| Manufacturing | 1.2 | 0.7 | 2.4 | 2.6 |
| Electricity, gas, steam and air conditioning supply | 3.0 | –3.4 | 4.7 | 0.4 |
| Water supply; sewerage, waste management and remediation activities | 0.6 | 1.5 | 2.1 | 3.2 |
| Services | 1.1 | 0.8 | 2.2 | 3.0 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.9 | 0.8 | 2.5 | 3.0 |
| Transportation and storage | 1.4 | 0.9 | 2.4 | 2.4 |
| Accommodation and food service activities | 1.1 | 0.6 | 3.1 | 3.5 |
| Information and communication | 1.2 | 0.2 | 2.9 | 2.9 |
| Financial and insurance activities | 0.9 | 0.7 | 2.5 | 3.0 |
| Real estate activities | 1.3 | 0.6 | 3.4 | 4.0 |
| Professional, scientific and technical activities | 1.2 | 1.0 | 1.8 | 3.3 |
| Administrative and support service activities | 1.3 | 1.5 | 2.3 | 3.8 |
| Construction | –0.3 | 1.2 | 1.7 | 2.9 |
| TOTAL | 1.0 | 0.8 | 2.2 | 2.8 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
tableauTable3 – LCI - total labour cost (without CICE)
| Quarterly variations (%) | Annual variations (%) | |||
|---|---|---|---|---|
| Q1-2018 | Q2-2018 | Q1-2018 | Q2-2018 | |
| Industry | 0.9 | 0.4 | 2.1 | 2.0 |
| Mining and quarrying | 1.6 | 2.9 | 3.5 | 6.3 |
| Manufacturing | 0.8 | 0.7 | 2.0 | 2.1 |
| Electricity, gas, steam and air conditioning supply | 2.8 | –3.4 | 4.5 | 0.2 |
| Water supply; sewerage, waste management and remediation activities | 0.2 | 1.5 | 1.7 | 2.8 |
| Services | 0.7 | 0.8 | 1.8 | 2.6 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.4 | 0.8 | 2.0 | 2.5 |
| Transportation and storage | 0.9 | 0.8 | 1.9 | 1.8 |
| Accommodation and food service activities | 0.5 | 0.6 | 2.5 | 2.8 |
| Information and communication | 0.9 | 0.2 | 2.7 | 2.7 |
| Financial and insurance activities | 0.7 | 0.7 | 2.3 | 2.8 |
| Real estate activities | 1.0 | 0.6 | 3.1 | 3.7 |
| Professional, scientific and technical activities | 0.9 | 1.0 | 1.6 | 3.0 |
| Administrative and support service activities | 0.8 | 1.4 | 1.8 | 3.2 |
| Construction | –0.8 | 1.2 | 1.2 | 2.4 |
| TOTAL | 0.6 | 0.8 | 1.8 | 2.4 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
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