FX.co ★ Euro Area Labour Costs Rise the Least since 2022

In the first quarter of 2025, hourly labor costs in the Euro Area experienced a 3.2% year-on-year increase, representing the most modest uptick since the third quarter of 2022, based on preliminary data. This follows a 3.7% rise recorded in the preceding quarter. Specifically, the wage component saw a 3.3% increase, again the slowest growth since Q3 2022, down from a prior 4.1% growth. On a different note, the non-wage component witnessed an acceleration, posting a 3% rise compared to 2.6% previously. Sector-wise, labor costs in the industry sector recorded the smallest hike, with an increase of 2.4%, down from 4.3%. The services sector reported a 4.4% increase, up from 3.8%, while labor costs in the construction sector surged by 4.9%, an increase from the previous quarter's 4.1%.