17.12.202510:10:54UTC+00Eurozone Labor Cost Growth Moderates in Q3

In the third quarter of 2025, hourly labor costs in the Euro Area rose by 3.3% compared to the previous year, a deceleration from the 3.6% increase observed in the preceding quarter and falling short of the preliminary estimate of 3.5%. The growth in wages and salaries slowed to 3.0%, down from 3.7% in the second quarter. Conversely, non-wage costs, which encompass social contributions and benefits, experienced a growth of 4.0%, up from 3.4%. When broken down by sectors, the business economy experienced a 3.3% rise in hourly labor costs, with construction leading at a 4.3% increase, followed by industry and services at 3.3% and 3.2%, respectively. In contrast, the non-business economy reported a more modest rise of 3.1%. Among the major economies within the Eurozone, the growth in labor costs eased in Germany (4.0% from 4.3% in Q2), Italy (2.8% from 3.8%), Spain (2.1% from 3.7%), and the Netherlands (3.8% from 6.5%), while France experienced a slight uptick, increasing to 1.7% from 1.6%.