Informations Rapides ·
16 February 2024 · n° 36
In Q4 2023, hourly wages increased by 3.2% over a year, hourly costs by 3.5% Labour cost index (LCI) – Flash estimate - fourth quarter 2023
Since 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 “LCI – 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 fourth quarter of 2023, the wage bill paid by employers in the non-agricultural market sector (excluding services to households) 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 have been massive at the end of 2023: €2.3 billion were paid to employees in the fourth quarter of 2023, much more than in the previous quarter (€540 million) but less than in the fourth quarter of 2022 (€3.3 billion). 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 aid for hiring a young worker with a sandwich course contract, launched at the end of July 2020, contributed to labour cost variations until the fourth quarter of 2023. From January 2023, employers are eligible, under certain conditions, for aid of up to €6,000.
Slowdown in hourly wages and hourly costs in the fourth quarter of 2023
Year-on-year, hourly wages slowed down in the non-agricultural market sectors (excluding services to households): +3.2% in the fourth quarter of 2023, after +4.2% in the previous quarter. This slowdown, in a context of lower inflation, was partly due to the lower payment of PPV over a year. Hourly wages were slightly more dynamic in construction (+3.4%) than in industry (+3.3%) and services (+3.2%).
Year-on-year, the hourly labour costs (wages and salaries, contributions, taxes net of subsidies) in the non-agricultural market sector (excluding services to households) increased by 3.5% in the fourth quarter of 2023, after +4.2% in the previous quarter. The difference in dynamism with the hourly wages in the fourth quarter of 2023 was largely due to the profile of PPV payments, which is not subject to social security contributions: the year-on-year fall in bonus payments has had a greater impact on year-on-year wage growth than on labour cost growth, especially in industry.
tableauChanges in LCI - hourly wages and LCI - hourly costs
| Changes in hourly wages in the fourth quarter of 2023 | Changes in hourly costs in the fourth quarter of 2023 | |||
|---|---|---|---|---|
| Quarter-on-quarter | Year-on-year | Quarter-on-quarter | Year-on-year | |
| INDUSTRY | 1.3 | 3.3 | 1.3 | 3.7 |
| CONSTRUCTION | 1.7 | 3.4 | 1.3 | 3.4 |
| SERVICES | 0.4 | 3.2 | 0.3 | 3.4 |
| TOTAL | 0.7 | 3.2 | 0.6 | 3.5 |
- 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-Q4 | 3.2 | 3.3 | 3.4 | 3.2 |
| 2023-Q3 | 4.2 | 4.4 | 3.7 | 4.1 |
| 2023-Q2 | 5.0 | 5.1 | 5.0 | 4.9 |
| 2023-Q1 | 4.4 | 4.3 | 5.0 | 4.2 |
| 2022-Q4 | 5.3 | 5.6 | 5.2 | 5.1 |
| 2022-Q3 | 3.9 | 3.4 | 4.2 | 3.9 |
| 2022-Q2 | 2.0 | 3.1 | 2.9 | 1.5 |
| 2022-Q1 | 2.6 | 3.4 | 2.6 | 2.3 |
| 2021-Q4 | 0.5 | 1.0 | 1.6 | 0.2 |
| 2021-Q3 | 1.5 | 1.5 | 2.1 | 1.4 |
| 2021-Q2 | -2.2 | -1.5 | -3.0 | -2.0 |
| 2021-Q1 | 2.4 | 1.4 | 1.2 | 3.3 |
| 2020-Q4 | 4.2 | 2.8 | 3.9 | 4.8 |
| 2020-Q3 | 3.1 | 2.2 | 2.5 | 3.6 |
| 2020-Q2 | 8.1 | 4.8 | 7.4 | 9.1 |
| 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 | 2.7 | 1.7 |
| 2019-Q2 | 1.4 | 1.7 | 2.0 | 1.3 |
| 2019-Q1 | 2.4 | 2.8 | 4.4 | 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 | 1.7 | 2.3 | 3.1 | 1.3 |
| 2017-Q1 | 1.4 | 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 | 1.7 | 1.5 | 1.1 |
| 2016-Q1 | 1.6 | 1.9 | 2.4 | 1.4 |
| 2015-Q4 | 1.7 | 1.9 | 2.1 | 1.5 |
| 2015-Q3 | 1.4 | 1.7 | 1.0 | 1.2 |
| 2015-Q2 | 1.4 | 1.7 | 1.6 | 1.1 |
| 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 | 2.2 | 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-Q4 | 3.5 | 3.7 | 3.4 | 3.4 |
| 2023-Q3 | 4.2 | 4.3 | 4.1 | 3.5 |
| 2023-Q2 | 4.6 | 4.7 | 4.6 | 4.2 |
| 2023-Q1 | 4.0 | 3.8 | 4.0 | 4.3 |
| 2022-Q4 | 4.8 | 4.9 | 4.8 | 4.3 |
| 2022-Q3 | 3.7 | 3.0 | 3.9 | 3.5 |
| 2022-Q2 | 2.0 | 3.0 | 1.6 | 2.7 |
| 2022-Q1 | 2.4 | 3.2 | 2.1 | 2.4 |
| 2021-Q4 | 0.1 | 0.6 | -0.1 | 0.7 |
| 2021-Q3 | 0.9 | 1.1 | 0.7 | 1.5 |
| 2021-Q2 | -2.6 | -1.7 | -2.3 | -4.0 |
| 2021-Q1 | 2.0 | 1.0 | 2.9 | 0.5 |
| 2020-Q4 | 3.5 | 2.5 | 3.9 | 3.6 |
| 2020-Q3 | 2.2 | 1.7 | 2.6 | 1.7 |
| 2020-Q2 | 7.3 | 4.4 | 8.1 | 7.4 |
| 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 | 2.6 |
| 2019-Q2 | 1.6 | 2.0 | 1.6 | 1.8 |
| 2019-Q1 | 2.3 | 2.7 | 2.0 | 3.6 |
| 2018-Q4 | 3.0 | 2.8 | 3.4 | 1.2 |
| 2018-Q3 | 2.7 | 2.6 | 2.8 | 3.1 |
| 2018-Q2 | 2.7 | 2.5 | 2.9 | 2.5 |
| 2018-Q1 | 2.2 | 2.8 | 2.2 | 1.5 |
| 2017-Q4 | 1.6 | 1.9 | 1.3 | 4.0 |
| 2017-Q3 | 1.1 | 2.1 | 0.7 | 2.3 |
| 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 | 0.4 | 1.8 |
| 2016-Q3 | 0.9 | 0.9 | 0.7 | 2.8 |
| 2016-Q2 | 1.0 | 1.1 | 0.9 | 1.9 |
| 2016-Q1 | 1.9 | 2.0 | 1.7 | 3.2 |
| 2015-Q4 | 1.0 | 1.3 | 0.8 | 1.3 |
| 2015-Q3 | 0.7 | 1.0 | 0.6 | 0.3 |
| 2015-Q2 | 0.7 | 1.1 | 0.5 | 0.9 |
| 2015-Q1 | 0.8 | 1.2 | 0.5 | 0.5 |
| 2014-Q4 | 0.2 | 0.8 | -0.1 | 0.0 |
| 2014-Q3 | 0.5 | 0.6 | 0.4 | -0.1 |
| 2014-Q2 | 0.7 | 0.8 | 0.7 | 0.4 |
| 2014-Q1 | 1.4 | 1.3 | 1.4 | 1.6 |
| 2013-Q4 | 0.3 | 0.3 | 0.4 | -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 | 0.0 | 0.4 | -0.7 |
| 2012-Q4 | 2.3 | 2.4 | 2.3 | 2.2 |
| 2012-Q3 | 2.5 | 2.8 | 2.3 | 2.5 |
| 2012-Q2 | 2.4 | 2.6 | 2.3 | 2.0 |
| 2012-Q1 | 2.1 | 3.0 | 1.8 | 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 fourth quarter of 2023: 19 March 2024 at 8:45 am.
Next publication of the flash estimate of the first quarter 2024: 15 May 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 fourth quarter of 2023: 19 March 2024 at 8:45 am.
Next publication of the flash estimate of the first quarter 2024: 15 May 2024 at 8:45 am.
Times series: Labour cost index - Base 2020
Informations Rapides: Labour cost index (LCI) - Detailed results