Informations Rapides ·
9 August 2024 · n° 199
In Q2 2024, hourly wages increased by 2.5% over a year, hourly costs by 2.7% Labour cost index (LCI) – Flash estimate - second 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. For more information, see the attached methodological note.
Economic context for estimating Labour Cost Indicators
In the second 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, the wage growth decreased compared to the previous quarter, in line with the decline in inflation the consumer price index increased by +2.2% over a year on average in the second quarter of 2024, after +2.8% in the previous quarter. The profile of wage growth was also marked by the Value Sharing Premium (PPV) for which payments have been subject to social contributions and income tax for some of the beneficiaries since January 2024: €540 million were paid to employees in the second quarter of 2024, compared with €490 million in the previous quarter and €750 million in the second quarter of 2023.
In addition, the aid for hiring a young worker with a sandwich course contract, launched in summer 2020, contributed to labour cost variations until the second quarter of 2024. Employers are eligible, under certain conditions, for aid of up to €6,000 since January 2023 (compared with €8,000 previously).
Slowdown in hourly wages and hourly costs in the second quarter of 2024
Year-on-year, hourly wages slowed down again in the non-agricultural market sector (excluding services to households): +2.5% in the second quarter of 2024, after +2.9% in the previous quarter. This was significantly less than its previous peak reached at the end of 2022 (+5.3%). This slowdown was mainly due to the decline in inflation; but hourly wages remained slightly more dynamic than prices since the beginning of 2024. The PPV payments, which declined very slightly over a year, also contributed, but to a lesser extent than in previous quarters. In the second quarter of 2024, hourly wages were more dynamic in industry (+3.0%) than in services (+2.3%) and construction (+1.9%).
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 2.7% in the second quarter of 2024, after +3.0% in the previous quarter. The difference in dynamism with hourly wages was mainly due to the profile of PPV payments, which is not subject to social security contributions: in the second quarter of 2024, the decrease in bonus payments over a year limited annual growth in wages slightly more than labour costs growth.
tableauChanges in LCI - hourly wages and LCI - hourly costs
| Changes in hourly wages in the second quarter of 2024 | Changes in hourly costs in the second quarter of 2024 | |||
|---|---|---|---|---|
| Quarter-on-quarter | Year-on-year | Quarter-on-quarter | Year-on-year | |
| INDUSTRY | 0.3 | 3.0 | 0.5 | 3.3 |
| CONSTRUCTION | 0.3 | 1.9 | 0.5 | 1.9 |
| SERVICES | 0.4 | 2.3 | 0.5 | 2.5 |
| TOTAL | 0.4 | 2.5 | 0.6 | 2.7 |
- 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-Q2 | 2.5 | 3.0 | 1.9 | 2.3 |
| 2024-Q1 | 2.9 | 3.0 | 2.3 | 2.8 |
| 2023-Q4 | 3.2 | 3.3 | 2.9 | 3.2 |
| 2023-Q3 | 4.2 | 4.5 | 3.7 | 4.1 |
| 2023-Q2 | 5.0 | 5.1 | 5.0 | 4.9 |
| 2023-Q1 | 4.3 | 4.3 | 4.9 | 4.1 |
| 2022-Q4 | 5.3 | 5.7 | 5.1 | 5.2 |
| 2022-Q3 | 3.9 | 3.4 | 4.2 | 4.0 |
| 2022-Q2 | 2.0 | 2.9 | 2.9 | 1.5 |
| 2022-Q1 | 2.5 | 3.2 | 2.6 | 2.3 |
| 2021-Q4 | 0.6 | 1.1 | 1.6 | 0.2 |
| 2021-Q3 | 1.5 | 1.6 | 2.2 | 1.4 |
| 2021-Q2 | -2.2 | -1.6 | -3.0 | -2.0 |
| 2021-Q1 | 2.4 | 1.2 | 1.2 | 3.2 |
| 2020-Q4 | 4.3 | 2.9 | 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 | 2.2 | 1.6 | 1.8 | 2.4 |
| 2019-Q4 | 1.2 | 1.5 | 2.8 | 1.1 |
| 2019-Q3 | 1.8 | 1.7 | 2.7 | 1.7 |
| 2019-Q2 | 1.4 | 1.7 | 2.1 | 1.3 |
| 2019-Q1 | 2.3 | 2.7 | 4.4 | 2.0 |
| 2018-Q4 | 2.2 | 2.1 | 0.6 | 2.4 |
| 2018-Q3 | 1.9 | 1.8 | 2.2 | 1.9 |
| 2018-Q2 | 1.8 | 1.7 | 1.6 | 1.9 |
| 2018-Q1 | 1.5 | 2.1 | 0.7 | 1.5 |
| 2017-Q4 | 1.8 | 2.1 | 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 | 1.3 | 1.7 | 2.2 | 1.1 |
| 2016-Q4 | 1.1 | 1.4 | 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 | 1.6 | 1.0 | 1.2 |
| 2015-Q2 | 1.4 | 1.7 | 1.6 | 1.1 |
| 2015-Q1 | 1.3 | 1.9 | 1.2 | 1.1 |
| 2014-Q4 | 1.1 | 1.8 | 0.7 | 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 | 2.1 |
| 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 | 1.0 | 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-Q2 | 2.7 | 3.3 | 2.5 | 1.9 |
| 2024-Q1 | 3.0 | 3.2 | 2.9 | 2.2 |
| 2023-Q4 | 3.4 | 3.7 | 3.4 | 3.0 |
| 2023-Q3 | 4.2 | 4.6 | 4.1 | 3.5 |
| 2023-Q2 | 4.6 | 4.7 | 4.5 | 4.2 |
| 2023-Q1 | 3.9 | 3.8 | 3.9 | 4.1 |
| 2022-Q4 | 4.8 | 4.9 | 4.8 | 4.1 |
| 2022-Q3 | 3.8 | 3.1 | 4.0 | 3.7 |
| 2022-Q2 | 2.0 | 2.9 | 1.6 | 3.0 |
| 2022-Q1 | 2.3 | 3.0 | 2.1 | 2.5 |
| 2021-Q4 | 0.4 | 0.9 | 0.1 | 1.1 |
| 2021-Q3 | 1.0 | 1.2 | 0.8 | 1.4 |
| 2021-Q2 | -2.7 | -2.0 | -2.3 | -4.5 |
| 2021-Q1 | 1.8 | 0.7 | 2.8 | -0.2 |
| 2020-Q4 | 3.5 | 2.5 | 4.0 | 3.2 |
| 2020-Q3 | 2.2 | 1.6 | 2.6 | 1.4 |
| 2020-Q2 | 7.3 | 4.4 | 8.0 | 7.4 |
| 2020-Q1 | 2.1 | 1.8 | 2.1 | 2.1 |
| 2019-Q4 | 0.9 | 1.4 | 0.7 | 2.0 |
| 2019-Q3 | 2.0 | 2.0 | 2.0 | 2.6 |
| 2019-Q2 | 1.7 | 2.0 | 1.6 | 1.9 |
| 2019-Q1 | 2.2 | 2.7 | 2.0 | 3.7 |
| 2018-Q4 | 3.0 | 2.8 | 3.4 | 1.1 |
| 2018-Q3 | 2.8 | 2.6 | 2.8 | 3.1 |
| 2018-Q2 | 2.7 | 2.4 | 2.8 | 2.4 |
| 2018-Q1 | 2.1 | 2.7 | 2.1 | 1.4 |
| 2017-Q4 | 1.6 | 1.9 | 1.3 | 4.0 |
| 2017-Q3 | 1.1 | 2.1 | 0.7 | 2.2 |
| 2017-Q2 | 1.2 | 2.1 | 0.7 | 3.0 |
| 2017-Q1 | 0.4 | 0.9 | 0.0 | 1.7 |
| 2016-Q4 | 0.6 | 0.8 | 0.5 | 1.9 |
| 2016-Q3 | 0.9 | 0.9 | 0.7 | 2.8 |
| 2016-Q2 | 1.1 | 1.1 | 0.9 | 2.0 |
| 2016-Q1 | 1.9 | 1.9 | 1.7 | 3.3 |
| 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 | -0.1 |
| 2014-Q3 | 0.4 | 0.6 | 0.4 | -0.2 |
| 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 | 2.2 | 2.3 | 2.1 | 2.0 |
| 2012-Q3 | 2.3 | 2.6 | 2.2 | 2.3 |
| 2012-Q2 | 2.2 | 2.4 | 2.2 | 1.8 |
| 2012-Q1 | 1.9 | 2.9 | 1.6 | 1.3 |
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 second quarter of 2024: 13 September 2024 at 8:45 am.
Next publication of the flash estimate of the third quarter of 2024: 14 November 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 second quarter of 2024: 13 September 2024 at 8:45 am.
Next publication of the flash estimate of the third quarter of 2024: 14 November 2024 at 8:45 am.
Times series: Labour cost index - Base 2020
Informations Rapides: Labour cost index (LCI) - Detailed results