Wage inflation: Hourly labor costs in EU by 2% YOY as wages increase by 2.1%

Another indicator of the general economy pickup up after near Armageddon, wages are starting to increase by a more healthy headline number.  They are increasing over 2% for the EU which means that they are still losing money after inflation is considered, but not as much as before.  Via Eurostat:
Hourly labour costs in the euro area (EA16) rose by 1.6% in the year up to the fourth quarter of 2010, compared with 0.9% for the previous quarter. In the EU271, the annual rise was 2.0% up to the fourth quarter of 2010, compared with 1.2% for the previous quarter.

The two main components of labour costs are wages & salaries and non-wage costs. In the euro area, wages & salaries per hour worked grew by 1.4% in the year up to the fourth quarter of 2010, and the non-wage component by 1.9%, compared with 0.8% and 1.3% respectively for the third quarter of 2010. In the EU27, hourly wages & salaries rose by 2.1% and the non-wage component by 1.5% in the year up to the fourth quarter of 2010, compared with 1.2% for both components for the third quarter of 2010.

The breakdown by economic activity shows that in the euro area hourly labour costs rose by 1.7% in industry, 1.1% in construction and 1.6% in services in the year up to the fourth quarter of 2010. In the EU27, labour costs per hour grew by 1.9% in industry, 1.0% in construction and 2.2% in services.

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