Informations Rapides ·
15 May 2024 · n° 116
In Q1 2024, hourly wages increased by 2.8% over a year, hourly costs by 3.0% Labour cost index (LCI) – Flash estimate - first quarter 2024
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 continue 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 first quarter of 2024, 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. Nevertheless, wage growth decreased compared to the previous quarter, in line with the decline in inflation. The profile of wage growth was also marked by the Value Sharing Premium (PPV) for which payments have dramatically fallen at the start of 2024 (in particular, the payments of this premium have been taxed since 1st January 2024): €490 million were paid to employees in the first quarter of 2024, much less than in the previous quarter (€2.3 billion) and than in the first quarter of 2023 (€1.2 billion).
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 first quarter of 2024. 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 first quarter of 2024
Year-on-year, hourly wages slowed down again in the non-agricultural market sector (excluding services to households): +2.8% in the first quarter of 2024, after +3.1% in the previous quarter. This was significantly less than its previous peak reached at the end of 2022 (+5.3%). This slowdown, in a context of lower inflation, was partly due to the lower payment of PPV over a year. In the first quarter, hourly wages were slightly more dynamic in industry (+3.1%) than in services (+2.7%) and construction (+2.1%).
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 3.0% in the first quarter of 2024, after +3.4% in the previous quarter. The difference in dynamism with hourly wages in the first quarter of 2024 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.
tableauChanges in LCI - hourly wages and LCI - hourly costs
| Changes in hourly wages in the first quarter of 2024 | Changes in hourly costs in the first quarter of 2024 | |||
|---|---|---|---|---|
| Quarter-on-quarter | Year-on-year | Quarter-on-quarter | Year-on-year | |
| INDUSTRY | 1.8 | 3.1 | 2.1 | 3.5 |
| CONSTRUCTION | -1.2 | 2.1 | -0.6 | 1.9 |
| SERVICES | 0.8 | 2.7 | 1.2 | 2.9 |
| TOTAL | 0.9 | 2.8 | 1.3 | 3.0 |
- 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 | |
|---|---|---|---|---|
| 2024-Q1 | 2.8 | 3.1 | 2.1 | 2.7 |
| 2023-Q4 | 3.1 | 3.2 | 2.9 | 3.1 |
| 2023-Q3 | 4.1 | 4.4 | 3.7 | 4.1 |
| 2023-Q2 | 5.0 | 5.2 | 5.0 | 4.9 |
| 2023-Q1 | 4.4 | 4.4 | 5.0 | 4.2 |
| 2022-Q4 | 5.3 | 5.5 | 5.1 | 5.2 |
| 2022-Q3 | 3.9 | 3.4 | 4.2 | 3.9 |
| 2022-Q2 | 2.0 | 3.0 | 2.9 | 1.5 |
| 2022-Q1 | 2.6 | 3.4 | 2.6 | 2.3 |
| 2021-Q4 | 0.5 | 0.9 | 1.6 | 0.2 |
| 2021-Q3 | 1.5 | 1.5 | 2.1 | 1.4 |
| 2021-Q2 | -2.2 | -1.4 | -3.0 | -2.1 |
| 2021-Q1 | 2.4 | 1.4 | 1.3 | 3.3 |
| 2020-Q4 | 4.2 | 2.8 | 3.9 | 4.9 |
| 2020-Q3 | 3.1 | 2.2 | 2.5 | 3.6 |
| 2020-Q2 | 8.0 | 4.8 | 7.4 | 9.0 |
| 2020-Q1 | 2.3 | 1.7 | 1.9 | 2.4 |
| 2019-Q4 | 1.2 | 1.4 | 2.7 | 1.1 |
| 2019-Q3 | 1.7 | 1.7 | 2.7 | 1.7 |
| 2019-Q2 | 1.4 | 1.7 | 2.1 | 1.3 |
| 2019-Q1 | 2.4 | 2.8 | 4.4 | 2.1 |
| 2018-Q4 | 2.2 | 2.0 | 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 | 1.5 | 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 | 1.6 | 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 | 2.2 | 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 | 2.6 | 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 – Labour cost index (LCI), flash estimate
tableauYear-on-year changes of LCI – hourly cost (flash estimate)
| Total | Industry | Services | Construction | |
|---|---|---|---|---|
| 2024-Q1 | 3.0 | 3.5 | 2.9 | 1.9 |
| 2023-Q4 | 3.4 | 3.6 | 3.3 | 2.8 |
| 2023-Q3 | 4.1 | 4.4 | 4.1 | 3.4 |
| 2023-Q2 | 4.6 | 4.7 | 4.5 | 4.2 |
| 2023-Q1 | 4.0 | 3.9 | 4.0 | 4.2 |
| 2022-Q4 | 4.9 | 4.8 | 4.9 | 4.3 |
| 2022-Q3 | 3.7 | 3.0 | 3.9 | 3.5 |
| 2022-Q2 | 2.0 | 2.9 | 1.6 | 2.7 |
| 2022-Q1 | 2.4 | 3.1 | 2.1 | 2.4 |
| 2021-Q4 | 0.1 | 0.5 | -0.1 | 0.7 |
| 2021-Q3 | 0.9 | 1.2 | 0.7 | 1.6 |
| 2021-Q2 | -2.6 | -1.7 | -2.4 | -4.0 |
| 2021-Q1 | 2.0 | 1.0 | 2.9 | 0.5 |
| 2020-Q4 | 3.5 | 2.5 | 4.0 | 3.6 |
| 2020-Q3 | 2.2 | 1.7 | 2.6 | 1.7 |
| 2020-Q2 | 7.3 | 4.4 | 8.0 | 7.4 |
| 2020-Q1 | 2.2 | 1.9 | 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 | 2.2 | 2.7 | 2.0 | 3.7 |
| 2018-Q4 | 3.1 | 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 | 1.1 | 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 | 0.6 | 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 | 0.3 |
| 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 | 0.0 | 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 | 1.9 | 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 – Labour 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.
An Insee blog post in 2023 showed the link and differences with short-term wage indicators, in particular the Basic Monthly Wage (SMB) from the Acemo survey.
Next publication of the detailed results of the first quarter of 2024: 14 June 2024 at 8:45 am.
Next publication of the flash estimate of the second quarter of 2024: 9 August 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.
An Insee blog post in 2023 showed the link and differences with short-term wage indicators, in particular the Basic Monthly Wage (SMB) from the Acemo survey.
Next publication of the detailed results of the first quarter of 2024: 14 June 2024 at 8:45 am.
Next publication of the flash estimate of the second quarter of 2024: 9 August 2024 at 8:45 am.
Times series: Labour cost index - Base 2020
Informations Rapides: Labour cost index (LCI) - Detailed results