Relevance
The
labour cost index (LCI) is an indicator which measures the cost of labour. The LCI is a Laspeyres index of labour cost
per hour worked, chain linked annually, and based upon a fixed structure of
economic activity at NACE section level. The labour costs are the total
quarterly costs incurred by the employer in the employment of personnel. Labour
cost indices are produced individually for the following categories;
- Total
labour cost
- Wages
and salaries
- Employers
social contributions
Methodological description
The index is calculated every
calendar quarter and is computed through the utilization of internal data
available from the National Accounts Unit and the Labour Force Survey (LFS), in
order to lessen the response burden on potential responding units.
Figures for total labour cost,
wages and salaries, social contributions, and number of employees are compiled
from National Accounts data. Figures for
actual hours worked by employees are estimated using employment figures
available from the National Accounts Unit and weekly average actual hours
worked available from LFS. Mean weekly actual hours worked by employees for
each NACE division are retrieved from the LFS and these figures are multiplied
by the respective figures on employment available from the National Accounts
Unit.
Accuracy and reliability of data
LCI data is revised on a quarterly
basis to reflect changes in data provided by the primary sources. The last three reference years are considered
‘open’ to revision, since new information from various surveys provides
additional updates on wages and salaries, and social contributions.
Timeliness and punctuality of data
Labour cost indices are transmitted
to Eurostat within the 70 day deadline following the reference quarter.
Accessibility and clarity of data
At
a national level, no statistics related to LCI are released, but data can be
downloaded from Eurostat’s online database.
A
quality report is compiled and sent annually to Eurostat whereas a national
quality report is available on the NSO’s metadata website.
Coherence and comparability/consistency
of data
Definitions used for the
compilation of LCI are comparable between all European Union Member States;
however the sources used for the production of this statistic vary between
different countries.
Subsidies which cover labour costs
are included in figures of total labour cost because these can’t be estimated
from National Accounts data. The LCI
sub-component of actual hours worked by employees is calculated differently
using National Accounts employment estimates along with LFS averages. Comparable estimates on actual hours worked
are available from 2004 onwards; the reference year since when the LFS started
to be carried out on a continuous basis.
Metadata