Informations Rapides ·
16 November 2023 · n° 289
In Q3 2023, hourly wages increased by 4.2% over a year, hourly costs by 4.0% Labour cost index (LCI) – Flash estimate - third quarter 2023
As of November 2023, INSEE has reduced the publication deadlines for the labour cost index (LCI). An initial estimate (“flash estimate”) of this index is now published approximately 45 days after the end of the quarter in question. Detailed results continues to be published approximately 75 days after the end of the quarter in question. In addition, the two components of the index, the “LCI – wages and salaries” and the “total labour cost index” have been be renamed “LCI – hourly wages” and “LCI – hourly costs” respectively. For more information, see the attached methodological note.
Economic context for estimating Labour Cost Indicators
In the third quarter of 2023, the wage bill increased significantly more than the number of hours paid by employers, so that hourly wages increased. This increase was the result of the inflation being taken into account in wage negotiations. The profile of wage growth was also marked by the Value Sharing Premium (PPV) for which payments decreased again in the third quarter of 2023: €540 million were paid to employees in the non-farm business sector excluding household services in the third quarter of 2023, compared with €670 million in the second quarter of 2023 and €610 million in the third quarter of 2022. This scheme, which replaced the special bonus for purchasing power, allows firms to pay, between July 2022 and December 2023, up to €3,000 of bonuses per calendar year and per employee (and even €6,000 in the case of a profit-sharing agreement), free of social security contributions and income tax.
In addition, the “1 young person, 1 solution” plan, launched at the end of July 2020, contributed to labour cost variations until the third quarter of 2023. As part of this plan, from January 2023, employers are eligible, under certain conditions, for aid of up to €6,000 to hire a young worker with a sandwich course contract.
Slowdown in hourly wages and hourly costs in the third quarter of 2023
Year-on-year, the hourly wages slowed down in the non agricultural market sectors (excluding household services) but remained dynamic: +4.2% in the third quarter of 2023 (after +4.9% in the previous quarter). This slowdown can be explained in part by the fact that there was no automatic revaluation of the minimum wage in the third quarter, unlike in the previous two quarters (+2.22% in May, after +1.81% in January). Hourly wages were slightly more dynamic in services (+4.3%) than in construction (+4.1%) and industry (+4.0%).
Year-on-year, the hourly labour costs (wages and salaries, contributions, taxes net of subsidies) in the non agricultural sector markets (excluding household services) increased by 4.0% in the third quarter of 2023, after +4.5% in the previous quarter.
tableauChanges in LCI - hourly wages and LCI - hourly costs
| Changes in hourly wages in the third quarter of 2023 | Changes in hourly costs in the third quarter of 2023 | |||
|---|---|---|---|---|
| Quarter-on-quarter | Year-on-year | Quarter-on-quarter | Year-on-year | |
| INDUSTRY | 0.2 | 4.0 | -0.1 | 3.8 |
| CONSTRUCTION | 1.9 | 4.1 | 1.3 | 3.5 |
| SERVICES | 0.8 | 4.3 | 0.4 | 4.0 |
| TOTAL | 0.8 | 4.2 | 0.4 | 4.0 |
- Scope: non-agricultural market sector excluding services to households
- Sources : URSSAF Caisse nationale, INSEE – Labour Cost Index (LCI), flash estimate
tableauYear-on-year changes of LCI–hourly wage (flash estimate)
| Total | Industry | Construction | Services | |
|---|---|---|---|---|
| 2023-Q3 | 4.2 | 4.0 | 4.1 | 4.3 |
| 2023-Q2 | 4.9 | 5.0 | 5.0 | 4.8 |
| 2023-Q1 | 4.1 | 4.0 | 4.9 | 4.0 |
| 2022-Q4 | 5.2 | 5.4 | 5.2 | 5.1 |
| 2022-Q3 | 3.8 | 3.3 | 4.2 | 3.9 |
| 2022-Q2 | 1.9 | 2.9 | 2.8 | 1.4 |
| 2022-Q1 | 2.5 | 3.4 | 2.6 | 2.2 |
| 2021-Q4 | 0.4 | 0.9 | 1.5 | 0.1 |
| 2021-Q3 | 1.4 | 1.4 | 2.0 | 1.3 |
| 2021-Q2 | -2.2 | -1.5 | -3.0 | -2.0 |
| 2021-Q1 | 2.5 | 1.5 | 1.3 | 3.4 |
| 2020-Q4 | 4.3 | 2.9 | 4.0 | 5.0 |
| 2020-Q3 | 3.2 | 2.4 | 2.6 | 3.7 |
| 2020-Q2 | 8.2 | 5.1 | 7.6 | 9.2 |
| 2020-Q1 | 2.3 | 1.7 | 1.9 | 2.4 |
| 2019-Q4 | 1.2 | 1.4 | 2.7 | 1.0 |
| 2019-Q3 | 1.7 | 1.7 | 2.6 | 1.8 |
| 2019-Q2 | 1.4 | 1.7 | 2.0 | 1.3 |
| 2019-Q1 | 2.4 | 2.8 | 4.3 | 2.1 |
| 2018-Q4 | 2.1 | 2.1 | 0.6 | 2.4 |
| 2018-Q3 | 1.9 | 1.8 | 2.2 | 1.9 |
| 2018-Q2 | 1.8 | 1.7 | 1.6 | 2.0 |
| 2018-Q1 | 1.6 | 2.1 | 0.7 | 1.6 |
| 2017-Q4 | 1.8 | 2.0 | 3.7 | 1.6 |
| 2017-Q3 | 1.5 | 2.3 | 2.3 | 1.2 |
| 2017-Q2 | 1.6 | 2.2 | 3.1 | 1.3 |
| 2017-Q1 | 1.3 | 1.7 | 2.2 | 1.1 |
| 2016-Q4 | 1.0 | 1.3 | 1.6 | 0.9 |
| 2016-Q3 | 1.3 | 1.5 | 2.5 | 1.1 |
| 2016-Q2 | 1.3 | 1.6 | 1.5 | 1.2 |
| 2016-Q1 | 1.6 | 1.8 | 2.4 | 1.4 |
| 2015-Q4 | 1.7 | 1.9 | 2.1 | 1.5 |
| 2015-Q3 | 1.4 | 1.6 | 1.0 | 1.2 |
| 2015-Q2 | 1.4 | 1.7 | 1.6 | 1.2 |
| 2015-Q1 | 1.4 | 1.8 | 1.2 | 1.1 |
| 2014-Q4 | 1.1 | 1.8 | 0.8 | 0.8 |
| 2014-Q3 | 1.4 | 1.6 | 0.8 | 1.3 |
| 2014-Q2 | 1.6 | 1.7 | 1.2 | 1.5 |
| 2014-Q1 | 2.2 | 2.3 | 2.5 | 2.1 |
| 2013-Q4 | 2.1 | 2.2 | 1.9 | 2.1 |
| 2013-Q3 | 2.3 | 2.6 | 2.1 | 2.2 |
| 2013-Q2 | 2.4 | 2.6 | 2.2 | 2.4 |
| 2013-Q1 | 2.1 | 1.9 | 1.3 | 2.2 |
| 2012-Q4 | 2.4 | 2.3 | 2.1 | 2.5 |
| 2012-Q3 | 2.4 | 2.5 | 2.3 | 2.4 |
| 2012-Q2 | 2.1 | 2.2 | 1.6 | 2.2 |
| 2012-Q1 | 1.8 | 2.6 | 1.1 | 1.6 |
graphiqueYear-on-year changes of LCI–hourly wage (flash estimate)
- Scope: non-agricultural market sector excluding services to households
- Sources: URSSAF Caisse nationale, INSEE – Labor cost index (LCI), flash estimate
tableauYear-on-year changes of LCI–hourly cost (flash estimate)
| Total | Industry | Services | Construction | |
|---|---|---|---|---|
| 2023-Q3 | 4.0 | 3.8 | 4.0 | 3.5 |
| 2023-Q2 | 4.5 | 4.6 | 4.4 | 4.2 |
| 2023-Q1 | 3.8 | 3.5 | 3.8 | 4.1 |
| 2022-Q4 | 4.8 | 4.7 | 4.8 | 4.3 |
| 2022-Q3 | 3.7 | 2.9 | 3.9 | 3.4 |
| 2022-Q2 | 1.9 | 2.9 | 1.5 | 2.6 |
| 2022-Q1 | 2.3 | 3.1 | 2.0 | 2.3 |
| 2021-Q4 | 0.0 | 0.5 | -0.3 | 0.7 |
| 2021-Q3 | 0.8 | 1.0 | 0.7 | 1.5 |
| 2021-Q2 | -2.6 | -1.8 | -2.4 | -4.0 |
| 2021-Q1 | 2.1 | 1.2 | 3.0 | 0.6 |
| 2020-Q4 | 3.6 | 2.7 | 4.0 | 3.7 |
| 2020-Q3 | 2.4 | 1.9 | 2.7 | 1.8 |
| 2020-Q2 | 7.4 | 4.6 | 8.2 | 7.6 |
| 2020-Q1 | 2.2 | 1.8 | 2.1 | 2.1 |
| 2019-Q4 | 0.8 | 1.3 | 0.6 | 1.9 |
| 2019-Q3 | 2.0 | 2.0 | 2.0 | 2.5 |
| 2019-Q2 | 1.6 | 2.0 | 1.6 | 1.8 |
| 2019-Q1 | 2.2 | 2.7 | 2.0 | 3.6 |
| 2018-Q4 | 3.0 | 2.8 | 3.4 | 1.2 |
| 2018-Q3 | 2.7 | 2.6 | 2.8 | 3.0 |
| 2018-Q2 | 2.7 | 2.5 | 2.8 | 2.5 |
| 2018-Q1 | 2.2 | 2.7 | 2.2 | 1.5 |
| 2017-Q4 | 1.6 | 1.9 | 1.3 | 4.0 |
| 2017-Q3 | 1.1 | 2.1 | 0.8 | 2.2 |
| 2017-Q2 | 1.2 | 2.1 | 0.7 | 3.1 |
| 2017-Q1 | 0.4 | 1.0 | 0.0 | 1.8 |
| 2016-Q4 | 0.6 | 0.7 | 0.5 | 1.8 |
| 2016-Q3 | 0.9 | 0.9 | 0.7 | 2.8 |
| 2016-Q2 | 1.1 | 1.1 | 0.9 | 1.9 |
| 2016-Q1 | 1.9 | 1.9 | 1.7 | 3.2 |
| 2015-Q4 | 1.0 | 1.2 | 0.8 | 1.3 |
| 2015-Q3 | 0.7 | 1.0 | 0.6 | 0.3 |
| 2015-Q2 | 0.7 | 1.0 | 0.5 | 0.9 |
| 2015-Q1 | 0.8 | 1.2 | 0.5 | 0.6 |
| 2014-Q4 | 0.2 | 0.8 | -0.1 | 0.0 |
| 2014-Q3 | 0.4 | 0.6 | 0.4 | -0.1 |
| 2014-Q2 | 0.7 | 0.7 | 0.7 | 0.4 |
| 2014-Q1 | 1.4 | 1.3 | 1.4 | 1.6 |
| 2013-Q4 | 0.3 | 0.3 | 0.3 | -0.1 |
| 2013-Q3 | 0.6 | 0.9 | 0.5 | 0.3 |
| 2013-Q2 | 0.6 | 0.7 | 0.5 | 0.1 |
| 2013-Q1 | 0.2 | 0.1 | 0.4 | -0.7 |
| 2012-Q4 | 2.3 | 2.5 | 2.3 | 2.2 |
| 2012-Q3 | 2.5 | 2.7 | 2.3 | 2.5 |
| 2012-Q2 | 2.4 | 2.6 | 2.3 | 2.0 |
| 2012-Q1 | 2.1 | 3.0 | 1.9 | 1.6 |
graphiqueYear-on-year changes of LCI–hourly cost (flash estimate)
- Scope: non-agricultural market sector excluding services to households
- Sources: URSSAF Caisse nationale, INSEE – Labor cost index (LCI), flash estimate
For further information
The flash estimate of the Labour Cost Index (LCI) is published approximatively 45 days after the end of the considered quarter. It is produced by using data from the Nominative Social Declaration (DSN) in advance. It anticipates the estimate of the detailed results, published approximately 75 days after the end of the quarter in question, which uses the consolidated data from the URSSAF Caisse nationale payroll data. When the flash estimate of LCI for a given quarter is published, the data on previous quarters are not revised.
A methodological note is available in the “Documentation” tab of the web version of this publication.
Next publication of the detailed results of the third quarter of 2023: 15 December 2023 at 8:45 am.
Next publication of the flash estimate of the fourth quarter 2023: 16 February 2024 at 8:45 am.
Documentation
LCI methodological note (pdf,184 Ko)
Pour en savoir plus
The flash estimate of the Labour Cost Index (LCI) is published approximatively 45 days after the end of the considered quarter. It is produced by using data from the Nominative Social Declaration (DSN) in advance. It anticipates the estimate of the detailed results, published approximately 75 days after the end of the quarter in question, which uses the consolidated data from the URSSAF Caisse nationale payroll data. When the flash estimate of LCI for a given quarter is published, the data on previous quarters are not revised.
A methodological note is available in the “Documentation” tab of the web version of this publication.
Next publication of the detailed results of the third quarter of 2023: 15 December 2023 at 8:45 am.
Next publication of the flash estimate of the fourth quarter 2023: 16 February 2024 at 8:45 am.
Times series: Labour cost index - Base 2020
Informations Rapides: Labour cost index (LCI) - Detailed results