Hourly labour costs in the euro area increased by 3.1 percent in the second quarter of 2026 compared to the same period in the previous year, according to official figures released by Eurostat, the statistical office of the European Union. Across the broader 27-member European Union, hourly labour costs grew by 3.2 percent over the same period.
The statistics highlight the main components driving labor expenses: wages and salaries alongside non-wage costs, such as social contributions paid by employers.
In the euro area, hourly wages and salaries rose by 3.0 percent, while the non-wage component grew at a slightly faster pace of 3.2 percent during the second quarter. Across the EU as a whole, both hourly wages and salaries and non-wage expenses recorded identical annual growth rates of 3.2 percent.
Within the euro area, labour cost growth varied across economic sectors. Costs in the mainly non-business economy rose by 3.1 percent, compared to a 3.0 percent increase in the business economy. Among specific business sectors, construction experienced the highest annual increase at 3.9 percent, followed by services at 3.0 percent and industry at 2.9 percent.
Across the wider EU, hourly labour costs in the non-business economy grew by 3.3 percent, while the business economy saw an increase of 3.1 percent. Construction similarly led sector growth in the EU at 3.9 percent, with services recording a 3.1 percent rise and industry increasing by 3.0 percent.
Specific economic activities exhibited significant divergence in hourly wage cost trajectories across the bloc. Sectoral data showed the highest annual increases in real estate activities (+5.7 percent), other service activities (+5.1 percent), and administrative and support service activities (+4.8 percent). Conversely, the lowest annual increases were recorded in mining and quarrying (+1.5 percent) and arts, entertainment, and recreation (+1.7 percent). Professional, scientific, and technical activities recorded a decline of 0.4 percent in hourly wage costs over the same period.
Analysis:
The second-quarter data published by Eurostat reflects continued upward pressure on labor expenses across both the euro area and the wider European Union, though at differentiated rates across economic sectors. The prominent growth in non-wage costs relative to direct wages in the euro area underscores the growing impact of employer-side overheads, including social security and benefits. Sectoral trends point to persistent demand and wage pressures in construction and administrative services, whereas technical and professional services registered slight contractions in wage growth, indicating uneven wage dynamics across the European economy.
Sources
[1] Eurostat News Releases: https://ec.europa.eu/eurostat/product?code=3-16092026-bp
Source: Eurostat News Releases
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Story synopsis gathered from: Eurostat News Releases — source
