Topics

Private sector cost of an hour worked increased by 2.6 per cent in January to March 2022

Statistics:

Labour cost index

Reference period:

2022, 1st quarter

Published:

09/06/2022

Next release:

08/09/2022

Publication type:

release

According to Statistics Finland, private sector labour costs increased by 2.6 per cent in January to March 2022 when compared with the respective period of the year before. Seasonally adjusted labour costs went up by 3.1 per cent. There was one more working day in the first quarter of 2022 than in the corresponding period of 2021. In the labour cost index, an increase in the number of working days usually has a decreasing effect on costs.

The chart includes the original and seasonally adjusted annual change curve of the labour cost index by quarter from the beginning of 2008 to the first quarter of 2022. Year-on-year changes in labour costs have varied between 2008 and 2022 from minus two per cent to around nine per cent. The growth in labour costs was at its highest in the second quarter of 2009 and the biggest drop in costs occurred between 2016 and 2017. Similar annual changes can also be detected in the seasonally adjusted annual change curve. The changes are more evenly visible than in the original curve. Labour costs in the private sector grew by 2.6 per cent during the first quarter of 2022.

Key points

The costs of an hour worked grew by 2.6 per cent in the private sector, by 4.7 per cent
in the local government sector and by 1.9 per cent in the central government
sector in the January to March period of 2022.
Of private sector industries, costs rose most, by 5.8 per cent, in the forest industry.
Costs fell in information and communication by 2.0 per cent in the first quarter of 2022.
In all sectors, the rise in costs is mainly caused by an increase in wages and
salaries subject to preliminary withholding tax.
In the local government sector, the growth in costs is also explained by the decrease in the number of hours worked.

Tables

See key statistical data in the tables.

09.06.2022

Labour costs, index points 2020Q1-2022Q1

	2020Q1	2020Q2	2020Q3	2020Q4	2021Q1	2021Q2	2021Q3	2021Q4	2022Q1
B-S Private sector	100.3	110.4	102.9	92.2	103.6	113.6	107.2	95.9	106.3
B-E Total industry	100.1	108.0	102.4	88.0	103.9	111.4	107.2	91.9	106.8
C Manufacturing	99.7	108.0	102.2	87.8	104.2	111.2	107.0	91.9	107.2
10-11 Food industry	105.4	116.2	109.1	93.5	110.7	118.7	112.6	98.5	110.9
16-17 Forest industry	100.9	115.3	98.4	85.4	101.3	116.7	101.8	89.5	107.2
19-22 Chemical industry	106.9	111.5	104.2	88.1	110.0	116.5	106.8	89.6	111.4
24-30 Metal industry	95.7	102.4	99.8	85.0	101.4	105.2	105.9	89.5	104.3
F Construction	102.0	107.7	108.1	94.8	105.4	113.0	110.7	98.3	108.9
G-N Service industries	101.3	113.2	102.0	93.9	105.0	116.3	107.0	97.6	107.2
G Wholesale and retail trade	102.2	116.9	104.0	94.5	111.7	119.9	108.8	101.5	116.8
H Transportation and storage	97.3	110.0	105.6	92.7	99.4	110.7	108.5	96.3	105.0
J Information and communication	100.2	107.9	102.2	89.5	104.1	114.4	103.1	93.8	102.0
K Financial and insurance activities	100.7	126.5	95.0	92.9	100.6	125.3	101.1	93.1	106.0
J-R State sector	92.2	116.3	101.7	93.2	94.1	119.4	107.1	95.4	95.9
D-S Local government sector	92.7	109.2	117.5	93.5	95.9	111.9	121.1	97.4	100.3

09.06.2022

Labour costs, annual change percentages 2020Q1-2022Q1

	2020Q1	2020Q2	2020Q3	2020Q4	2021Q1	2021Q2	2021Q3	2021Q4	2022Q1
B-S Private sector	0.7	0.4	0.4	-1.2	3.3	2.9	4.2	4.0	2.6
B-E Total industry	2.9	-1.9	-0.1	-2.4	3.8	3.2	4.7	4.5	2.8
C Manufacturing	3.1	-2.1	0.1	-2.5	4.5	2.9	4.8	4.6	2.9
10-11 Food industry	2.2	3.4	-1.9	-1.7	5.1	2.1	3.2	5.4	0.1
16-17 Forest industry	2.0	-3.9	-0.9	-3.4	0.4	1.3	3.4	4.8	5.8
19-22 Chemical industry	3.4	-2.7	-0.4	-3.3	3.0	4.5	2.5	1.7	1.2
24-30 Metal industry	2.9	-3.3	0.8	-2.8	5.9	2.8	6.0	5.3	2.9
F Construction	-0.1	0.1	0.7	0.2	3.4	4.9	2.4	3.7	3.4
G-N Service industries	-0.1	2.5	-0.1	-0.9	3.7	2.8	4.9	4.0	2.0
G Wholesale and retail trade	-3.2	1.4	-0.8	-1.6	9.3	2.5	4.7	7.3	4.5
H Transportation and storage	0.5	1.0	0.4	-3.9	2.2	0.7	2.7	3.9	5.7
J Information and communication	0.6	-1.1	0.8	-2.3	3.9	6.0	1.0	4.8	-2.0
K Financial and insurance activities	2.1	6.3	2.2	-0.5	-0.0	-1.0	6.4	0.2	5.3
J-R State sector	0.6	5.2	0.4	0.6	2.1	2.6	5.3	2.4	1.9
D-S Local government sector	-0.5	4.3	3.4	1.1	3.4	2.4	3.1	4.2	4.7

Data revisions

See key statistical data in the tables.

09.06.2022

Revisions to the original labour cost index, year-on-year-change

	1/2021	2/2021	3/2021	4/2021
Private sector	1st release	3,2	2,4	4,2	3,9
Latest release	3,3	2,9	4,2	4,0
Revision, %-points	0,1	0,5	0,0	0,1
Central government	1st release	2,1	2,5	5,4	2,4
Latest release	2,1	2,6	5,3	2,4
Revision, %-points	0,0	0,1	-0,1	0,0
Local government	1st release	3,7	2,4	3,0	4,3
Latest release	3,4	2,4	3,1	4,2
Revision, %-points	-0,3	0,0	0,1	-0,1

09.06.2022

Revisions to the seasonally adjusted labour cost index, year-on-year-change

	1/2021	2/2021	3/2021	4/2021
Private sector	1st release	2,1	2,2	3,2	3,7
Latest release	2,5	2,9	3,5	3,7
Revision, %-points	0,4	0,7	0,3	0,0
Central government	1st release	2,0	2,0	5,1	2,9
Latest release	2,3	2,3	4,9	2,8
Revision, %-points	0,3	0,3	-0,2	-0,1
Local government	1st release	3,4	2,3	2,8	4,1
Latest release	3,3	2,2	3,0	4,2
Revision, %-points	-0,1	-0,1	0,2	0,1