Euro area hourly labour costs rose 3.3% in the third quarter of 2025 from a year earlier, while the wider European Union recorded a 3.7% increase, underscoring continued wage pressures even as economic growth remains uneven, data from Eurostat showed.
In the 20-nation euro zone, hourly wages and salaries increased by 3.0%, while non-wage costs such as employers’ social contributions climbed 4.0%. Across the EU, wage costs rose 3.5% and non-wage components advanced 4.2%, reflecting broad-based cost pressures for employers.
Also read: Indonesia textiles seek revival amid growth slowdown
By sector, labour costs in the euro area increased 3.1% in the mainly non-business economy and 3.3% in the business economy, including a 3.3% rise in industry. In the EU, labour costs rose 3.4% in the non-business economy and 3.8% in the business economy, with industry posting a 3.7% gain.
At the national level, Bulgaria recorded the fastest annual growth in hourly wage costs at 12.4%, followed by Lithuania, Croatia and Hungary. The weakest increases were seen in France, Slovenia, Spain, Austria and Italy, while Malta was the only member state to register a decline, with labour costs falling 1.4%.
Also Read: Smart Fabrics Poised to Hit USD 29 Billion Market
The figures add to the European Central Bank’s challenge as it monitors wage dynamics for signs of persistent inflation, even as price growth has eased across much of the bloc.
