Informations Rapides ·
14 November 2024 · n° 280
In Q3 2024, hourly wages increased by 2.7% over a year, hourly costs by 2.9% Labour cost index (LCI) – Flash estimate - third quarter 2024
Slowdown in hourly wages and hourly costs in the third quarter of 2024
Year-on-year, hourly wages slowed down in the non-agricultural market sector (excluding services to households) in the third quarter of 2024: +2.7%, after +3.0% 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: the consumer price index increased by +1.8% over a year on average in the third quarter of 2024, after +2.2% in the previous quarter. However, hourly wages remained slightly more dynamic than prices since the beginning of 2024. Nevertheless, the payments of the Value Sharing Premium (“PPV”) were almost steady over a year: €450 million have been paid to employees in the third quarter of 2024, compared with €460 million in the third quarter of 2023.
By business sector, hourly wages accelerated in construction (+3.1%, after +2.7%), boosted by a slight increase in PPV payments over a year. Wages slowed down barely in industry (+3.3%, after +3.4%) and more sharply in services (+2.4%, after +2.8%).
Year-on-year, the hourly labour costs (wages and salaries, contributions, taxes net of subsidies) in the non-agricultural market sector also slowed down in the third quarter of 2024: +2.9%, after +3.4% in the previous quarter. Exemptions of employers’ contributions decreased slightly over a year, causing labour costs to rise a bit more than wages.
tableauChanges in LCI - hourly wages and LCI - hourly costs
| Changes in hourly wages in the third quarter of 2024 | Changes in hourly costs in the third quarter of 2024 | |||
|---|---|---|---|---|
| Quarter-on-quarter | Year-on-year | Quarter-on-quarter | Year-on-year | |
| INDUSTRY | 0.9 | 3.3 | 0.7 | 3.5 |
| CONSTRUCTION | 2.2 | 3.1 | 1.7 | 3.1 |
| SERVICES | 0.1 | 2.4 | 0.0 | 2.6 |
| TOTAL | 0.5 | 2.7 | 0.4 | 2.9 |
- 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-Q3 | 2.7 | 3.3 | 3.1 | 2.4 |
| 2024-Q2 | 3.0 | 3.4 | 2.7 | 2.8 |
| 2024-Q1 | 2.9 | 2.9 | 2.4 | 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 | 4.2 | 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 | 0.3 |
| 2021-Q3 | 1.5 | 1.6 | 2.2 | 1.4 |
| 2021-Q2 | -2.2 | -1.5 | -3.0 | -2.0 |
| 2021-Q1 | 2.3 | 1.3 | 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 | 2.3 |
| 2019-Q4 | 1.3 | 1.5 | 2.7 | 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 | 2.5 |
| 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 | 2.0 | 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 | 1.3 | 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 | 2.0 | 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 | 0.8 | 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 | 2.2 |
| 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 | 2.0 | 2.5 |
| 2012-Q3 | 2.4 | 2.6 | 2.3 | 2.4 |
| 2012-Q2 | 2.1 | 2.2 | 1.5 | 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-Q3 | 2.9 | 3.5 | 2.6 | 3.1 |
| 2024-Q2 | 3.4 | 3.8 | 3.1 | 3.0 |
| 2024-Q1 | 3.1 | 3.2 | 3.1 | 2.4 |
| 2023-Q4 | 3.3 | 3.6 | 3.3 | 2.8 |
| 2023-Q3 | 4.1 | 4.4 | 4.0 | 3.4 |
| 2023-Q2 | 4.5 | 4.6 | 4.5 | 4.1 |
| 2023-Q1 | 3.8 | 3.7 | 3.7 | 4.1 |
| 2022-Q4 | 4.8 | 4.9 | 4.8 | 4.0 |
| 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 | 0.2 | 1.1 |
| 2021-Q3 | 1.0 | 1.2 | 0.8 | 1.4 |
| 2021-Q2 | -2.7 | -2.0 | -2.4 | -4.5 |
| 2021-Q1 | 1.8 | 0.7 | 2.8 | -0.1 |
| 2020-Q4 | 3.5 | 2.5 | 4.0 | 3.3 |
| 2020-Q3 | 2.2 | 1.6 | 2.6 | 1.4 |
| 2020-Q2 | 7.2 | 4.4 | 8.0 | 7.3 |
| 2020-Q1 | 2.1 | 1.8 | 2.1 | 2.1 |
| 2019-Q4 | 0.9 | 1.4 | 0.7 | 1.8 |
| 2019-Q3 | 2.0 | 2.0 | 2.0 | 2.5 |
| 2019-Q2 | 1.6 | 2.0 | 1.6 | 1.9 |
| 2019-Q1 | 2.2 | 2.7 | 2.0 | 3.8 |
| 2018-Q4 | 3.0 | 2.8 | 3.4 | 1.1 |
| 2018-Q3 | 2.8 | 2.6 | 2.8 | 3.2 |
| 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 | 1.4 | 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 | 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 | 1.0 | 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 | 1.3 | 0.5 | 0.5 |
| 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 | 0.3 |
| 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 | 2.2 | 2.3 | 2.1 | 1.9 |
| 2012-Q3 | 2.3 | 2.6 | 2.2 | 2.2 |
| 2012-Q2 | 2.2 | 2.4 | 2.2 | 1.7 |
| 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 (2023, in French) 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 third quarter of 2024: 13 December 2024 at 8:45 am.
Next publication of the flash estimate of the fourth quarter of 2024: 14 February 2025 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 (2023, in French) 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 third quarter of 2024: 13 December 2024 at 8:45 am.
Next publication of the flash estimate of the fourth quarter of 2024: 14 February 2025 at 8:45 am.
Times series: Labour cost index - Base 2020
Informations Rapides: Labour cost index (LCI) - Detailed results