FX.co ★ Euro Area Labour Costs Rise Less than Expected

In the first quarter of 2025, hourly labor costs in the Euro Area experienced a 3.4% increase from the previous year, representing the smallest rise since the third quarter of 2022. This follows a 3.8% increase observed in the prior quarter. The wage component also grew by 3.4%, its slowest rate since Q3 2022, down from the preceding 4.1%. Conversely, the non-wage component saw an acceleration, with a rise of 3.4% compared to 2.7% in the last period. Sector-wise, the industry sector registered the minimal rise in labor costs, at 2.5%, compared to the previous 4.2%. Meanwhile, the services sector experienced a 4.3% increase, up from 3.8%, and the construction sector recorded a 4.7% gain, up from the previous 4.2%.