The Labor Cost Index, which measures costs per hour actually worked, increased by 5.2% year-on-year in the second quarter, accelerating from the 4.4% recorded in the first quarter of this year, the INE reported today.
In the second quarter, compared to the same quarter of 2024, the evolution of the Labor Cost Index (LCI) resulted from a combination of a 5.9% increase in the average cost per worker (5.9% in the previous quarter) and a 0.6% rise in the number of hours actually worked per worker (1.6% in the previous quarter).
The INE noted that the increase in the average cost per worker was across all economic activities, with the largest increases in Public Administration (6.7%) and the smallest in Services (5.2%).
Construction and Industry showed increases above those recorded in the previous quarter, while Services and Public Administration registered smaller increases.
The hours actually worked per worker increased in all economic activities, except Public Administration, where they decreased by 2.7%.
The largest increase was observed in Industry (3.2%) and the smallest in Services (2.1%). As a result of these changes, the LCI increased in all economic activities, with the largest increase observed in Public Administration (9.5%).
Labor costs include both wage costs (per hour actually worked) and other costs (also per hour actually worked).
