14 June 2019
2019- n° 154In Q1 2019, the labour cost index - wages and salaries increased by 1.5%, the total
labour cost index increased by 1.2% Labor cost index in industry, construction and services - first quarter 2019
In the first quarter of 2019, the labour cost index (LCI) - wages and salaries in the non-farm business sector accelerated sharply : +1.5% quarter on quarter, after +0.5% in Q4 2018 (seasonally adjusted data). Without the special bonus for purchasing power (PEPA) it would have remained stable in the first quarter. Year on year, the LCI – wages and salaries rose by 2.9%, a larger increase than in the fourth quarter (+2.1%). The average working time slightly increased in the first quarter (+0.3% y-o-y).
- From this release and in accordance with European regulations, the base year for the labour cost index is 2016 : the average of the four 2016 quarterly indices is equal to 100. This change of base year has no impact on the evolutions of the index (quarter-over-quarter as well as year-over-year).
- Some employers’ social contributions taken into account in the labour cost index have been updated with the results of the French part of the 2016 European Labour Cost Survey. This leads to slight downward revisions in average annual evolutions (around 0.2 to 0.3 points each year).
- On 1st January 2019, the tax credit encouraging competitiveness and jobs (CICE) was transformed into a permanent reduction in employers’ social contributions of an equivalent amount. In concrete terms, this means abolishing the tax credit as such, and creating a uniform 6-point reduction in the rate of employers' social contributions applicable to salaries up to a maximum of 2.5 times the minimum wage (the rate reduction, as well as the base, are equal to those of the CICE in metropolitan France before its abolition). This transformation is neutral on the labour cost index.
- As part of the economic and social emergency measures adopted by the French Parliament in December 2018, firms might pay a special bonus for purchasing power (PEPA) in the first quarter of 2019, to employees earning less than 3 times the minimal wage. This bonus, which is free of income tax and social contribution up to 1’000€, boosts the labour cost index – wages and salaries by 1.5 points and the total labour cost index by 1.0 point in Q1 2019.
- Following the merger of the supplementary pension schemes AGIRC and ARRCO, the corresponding social contribution rates were modified on 1st January 2019, increasing by 0.3 points the total labour cost index.
- The wages and salary costs increased by 1.5%
- Wages accelerated sharply in industry and construction, but more softly in services
- Slight downward revision of LCI – wages and salaries in Q4 2018
- The total labour cost index increased by 1.2%
- Slight downward revision of LCI – total labour cost in Q4 2018
The wages and salary costs increased by 1.5%
In the first quarter of 2019, the labour cost index (LCI) - wages and salaries in the non-farm business sector accelerated sharply : +1.5% quarter on quarter, after +0.5% in Q4 2018 (seasonally adjusted data). Without the special bonus for purchasing power (PEPA) it would have remained stable in the first quarter. Year on year, the LCI – wages and salaries rose by 2.9%, a larger increase than in the fourth quarter (+2.1%). The average working time slightly increased in the first quarter (+0.3% y-o-y).
tableauLCI - wages and salaries: Year-on-year changes
| Total | Industry | Construction | Services | |
|---|---|---|---|---|
| 2012-Q1 | 1.7 | 2.5 | 0.3 | 1.5 |
| 2012-Q2 | 2.1 | 2.3 | 1.6 | 2.1 |
| 2012-Q3 | 2.5 | 2.5 | 2.4 | 2.5 |
| 2012-Q4 | 2.5 | 2.3 | 2.2 | 2.6 |
| 2013-Q1 | 2.2 | 2.1 | 2.2 | 2.2 |
| 2013-Q2 | 2.5 | 2.6 | 2.2 | 2.4 |
| 2013-Q3 | 2.3 | 2.7 | 2.1 | 2.2 |
| 2013-Q4 | 2.1 | 2.3 | 1.9 | 2.1 |
| 2014-Q1 | 2.2 | 2.3 | 2.5 | 2.1 |
| 2014-Q2 | 1.6 | 1.7 | 1.3 | 1.5 |
| 2014-Q3 | 1.4 | 1.6 | 0.9 | 1.3 |
| 2014-Q4 | 1.1 | 1.8 | 0.8 | 0.8 |
| 2015-Q1 | 1.4 | 1.8 | 1.1 | 1.2 |
| 2015-Q2 | 1.4 | 1.7 | 1.5 | 1.2 |
| 2015-Q3 | 1.4 | 1.6 | 1.0 | 1.3 |
| 2015-Q4 | 1.7 | 1.9 | 2.1 | 1.5 |
| 2016-Q1 | 1.4 | 1.8 | 1.4 | 1.3 |
| 2016-Q2 | 1.4 | 1.7 | 1.5 | 1.3 |
| 2016-Q3 | 1.3 | 1.5 | 2.5 | 1.1 |
| 2016-Q4 | 1.0 | 1.3 | 1.6 | 0.9 |
| 2017-Q1 | 1.6 | 1.8 | 3.0 | 1.5 |
| 2017-Q2 | 1.6 | 2.1 | 3.1 | 1.3 |
| 2017-Q3 | 1.6 | 2.3 | 2.4 | 1.3 |
| 2017-Q4 | 1.8 | 1.8 | 3.7 | 1.6 |
| 2018-Q1 | 1.6 | 2.1 | 0.8 | 1.5 |
| 2018-Q2 | 1.8 | 1.8 | 1.7 | 1.9 |
| 2018-Q3 | 2.0 | 1.8 | 2.6 | 2.1 |
| 2018-Q4 | 2.1 | 2.0 | 0.7 | 2.3 |
| 2019-Q1 | 2.9 | 3.3 | 5.2 | 2.6 |
graphiqueLCI - wages and salaries: Year-on-year changes
- Scope: non-agricultural market sector excluding services to households.
- Sources: ACOSS, DARES, INSEE.
Wages accelerated sharply in industry and construction, but more softly in services
In Q1 2019, wages in industry accelerated sharply over the quarter (+2.4% after +0.3% in Q4 2018) and over the year (+3.3% after +2.0%).
Wages in construction also rose very strongly (+2.9%) after being almost stable in Q4 2019 (-0.1%).
In Q1 2019, wages in services accelerated more softly quarter on quarter (+1.1% after +0.6% in the fourth quarter) and year on year (+2.6% after +2.3%). The acceleration is sharp in financial and insurance activities (+3.3% q-o-q in the first quarter after +0,6%), in wholesale and retail trade (+1.7% after +0.3%) and in accommodation and food services activities (+1.3% after +0.1%). It is softer in other sectors. In contrast, wages in professional, scientific and technical activities declined (-0.9%) after an increase to the same extent in the previous quarter (+0.9%)
tableauLCI - wages & salaries
| Quarterly variations (%) | Yearly variations(%) | |||
|---|---|---|---|---|
| Q4-2018 | Q1-2019 | Q4-2018 | Q1-2019 | |
| Industry | 0.3 | 2.4 | 2.0 | 3.3 |
| Mining and quarrying | 0.5 | 4.1 | 3.2 | 5.8 |
| Manufacturing | 0.3 | 2.3 | 2.0 | 3.3 |
| Electricity, gas, steam and air conditioning supply | 0.6 | 1.7 | 2.9 | 1.6 |
| Water supply; sewerage, waste management and remediation activities | 0.4 | 4.4 | 1.8 | 6.5 |
| Services | 0.6 | 1.1 | 2.3 | 2.6 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.3 | 1.7 | 1.8 | 2.8 |
| Transportation and storage | 0.7 | 0.9 | 2.5 | 2.4 |
| Accommodation and food service activities | 0.1 | 1.3 | 1.5 | 2.4 |
| Information and communication | 0.4 | 0.8 | 2.1 | 1.6 |
| Financial and insurance activities | 0.6 | 3.3 | 2.5 | 4.6 |
| Real estate activities | 1.9 | 1.0 | 4.2 | 4.0 |
| Professional, scientific and technical activities | 0.9 | -0.9 | 3.4 | 1.6 |
| Administrative and support service activities | 0.2 | 1.1 | 1.5 | 2.4 |
| Construction | -0.1 | 2.9 | 0.7 | 5.2 |
| TOTAL | 0.5 | 1.5 | 2.1 | 2.9 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Slight downward revision of LCI – wages and salaries in Q4 2018
The Q4 2018 quarterly variation in LCI - wages and salaries in the non-farm business sector has been revised downwards by 0.1 percentage points due to additional workforce and worked hours data.
The total labour cost index increased by 1.2%
In the first quarter of 2019, the total labour cost index in the non-farm business sector accelerated sharply over the quarter (+1.2% after +0.5% – seasonally adjusted data). It increased by 2.8% over the year, nearly at the same pace as in the previous quarter (+2.9%).
tableauLCI - total labour cost: year-on-year changes
| Total | Industry | Construction | Services | |
|---|---|---|---|---|
| 2012-Q1 | 1.9 | 2.9 | 0.7 | 1.7 |
| 2012-Q2 | 2.3 | 2.6 | 2.0 | 2.3 |
| 2012-Q3 | 2.5 | 2.8 | 2.5 | 2.4 |
| 2012-Q4 | 2.4 | 2.5 | 2.2 | 2.4 |
| 2013-Q1 | 0.4 | 0.3 | 0.1 | 0.4 |
| 2013-Q2 | 0.6 | 0.7 | 0.1 | 0.6 |
| 2013-Q3 | 0.6 | 1.0 | 0.3 | 0.6 |
| 2013-Q4 | 0.3 | 0.4 | 0.0 | 0.4 |
| 2014-Q1 | 1.4 | 1.4 | 1.7 | 1.4 |
| 2014-Q2 | 0.7 | 0.8 | 0.4 | 0.7 |
| 2014-Q3 | 0.4 | 0.6 | -0.1 | 0.4 |
| 2014-Q4 | 0.2 | 0.8 | 0.0 | -0.1 |
| 2015-Q1 | 0.8 | 1.2 | 0.4 | 0.6 |
| 2015-Q2 | 0.8 | 1.1 | 0.8 | 0.6 |
| 2015-Q3 | 0.8 | 1.0 | 0.3 | 0.7 |
| 2015-Q4 | 1.0 | 1.2 | 1.3 | 0.8 |
| 2016-Q1 | 1.8 | 1.9 | 2.3 | 1.6 |
| 2016-Q2 | 1.1 | 1.2 | 1.9 | 1.0 |
| 2016-Q3 | 0.9 | 0.9 | 2.8 | 0.7 |
| 2016-Q4 | 0.6 | 0.6 | 1.9 | 0.4 |
| 2017-Q1 | 0.5 | 0.8 | 2.5 | 0.3 |
| 2017-Q2 | 1.0 | 1.8 | 2.9 | 0.6 |
| 2017-Q3 | 1.1 | 1.9 | 2.3 | 0.8 |
| 2017-Q4 | 1.5 | 1.6 | 3.8 | 1.3 |
| 2018-Q1 | 2.1 | 2.6 | 1.4 | 2.1 |
| 2018-Q2 | 2.6 | 2.4 | 2.4 | 2.7 |
| 2018-Q3 | 2.8 | 2.4 | 3.3 | 2.9 |
| 2018-Q4 | 2.9 | 2.6 | 1.2 | 3.2 |
| 2019-Q1 | 2.8 | 3.0 | 4.6 | 2.6 |
graphiqueLCI - 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 Q4 2018
The Q4 2018 quarter-on-quarter variation in total labour cost index in the non-farm business sector has been revised upwards by 0.2 percentage points and the year-over-year variation remained unchanged.
tableauLCI - total labour cost
| Quarterly variations (%) | Yearly variations (%) | |||
|---|---|---|---|---|
| Q4-2018 | Q1-2019 | Q4-2018 | Q1-2019 | |
| Industry | 0.4 | 1.9 | 2.6 | 3.0 |
| Mining and quarrying | 0.5 | 3.6 | 3.7 | 5.4 |
| Manufacturing | 0.3 | 1.8 | 2.6 | 2.9 |
| Electricity, gas, steam and air conditioning supply | 0.6 | 1.7 | 3.1 | 1.6 |
| Water supply; sewerage, waste management and remediation activities | 0.4 | 4.1 | 2.5 | 6.4 |
| Services | 0.7 | 0.8 | 3.2 | 2.6 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 0.4 | 1.5 | 2.8 | 3.0 |
| Transportation and storage | 0.8 | 0.5 | 3.5 | 2.2 |
| Accommodation and food service activities | 0.2 | 1.2 | 2.7 | 2.7 |
| Information and communication | 0.4 | 0.7 | 2.5 | 1.6 |
| Financial and insurance activities | 0.6 | 2.3 | 2.9 | 3.6 |
| Real estate activities | 2.0 | 0.6 | 4.7 | 3.7 |
| Professional, scientific and technical activities | 1.0 | -1.0 | 4.0 | 1.5 |
| Administrative and support service activities | 0.6 | 0.9 | 2.9 | 2.9 |
| Construction | -0.2 | 2.4 | 1.2 | 4.6 |
| TOTAL | 0.5 | 1.2 | 2.9 | 2.8 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Pour en savoir plus
