5.1.1 Statistical presentation

Labour cost statistics constitute a hierarchical system of multiannual, yearly and quarterly statistics, designed to provide a comprehensive and detailed picture of the level, structure and short-term development of labour costs in the different sectors of the European Union and certain other countries. All statistics are based on a harmonised definition of labour costs.

a)      Structural information on labour costs is collected through four-yearly Labour Cost Surveys covering detailed structural labour costs data, hours worked and hours paid (LCS collection). The reference years of the surveys covered are 1996, 2000 and 2004. All EU Member States together with Norway and Iceland participated.

Available information is broken down by size category (10-49, 50-249, 250-499, 500-999, ≥1 000 employees), economic activity (General Industrial Classification of Economic Activities (NACE) divisions for Sections C to K; in 2004 Sections C to O excluding L), and region for larger countries (Nomenclature of Territorial Units for Statistics (NUTS)).

The data are collected by the National Statistical Institutes on the basis of stratified random samples of enterprises or local units, restricted in most countries to units with at least 10 employees. The stratification is based on economic activity, size category and region (where appropriate).

b)     Annual data covers the core labour cost variables “average monthly labour costs” and “average hourly labour costs” as well as the breakdown of labour costs by principal categories (wages and salaries; direct remuneration and bonuses; employers’ social security contributions; other labour costs). Data - also broken down by economic activity - are available for the EU aggregates, EU Member States and to some extent for Norway and Iceland (NACE Sections C to K and the C-E, C-F, G-I, J-K, G-K and C-K aggregates).

The data are either collected by the National Statistical Institutes or, more frequently, estimated by them on the basis of their four-yearly surveys and additional up-to-date - though sometimes partial - information. Coverage of statistical units, thresholds and the like is identical to that of the four yearly surveys.

c)     The quarterly Labour Cost Index (LCI) is an Euro Indicator which measures the cost pressure arising from the production factor “labour”. The data covered in the LCI collection relate to total average hourly labour costs and to the labour cost categories “wages and salaries” and “employers’ social security contributions plus taxes paid minus subsidies received by the employer”. Data - also broken down by economic activity, are available for the EU aggregates and EU Member States (NACE Sections C to K) in nominal and real terms (adjusted on the basis of harmonised consumer price indices), and seasonally adjusted.

The data are estimated by the National Statistical Institutes on the basis of available structural and short-term information from samples and administrative records for enterprises of all sizes.

Metadata in SDDS format are also available on Eurostat website at: http://europa.eu.int/estatref/info/sdds/en/lc/lc_base.htm and
http://europa.eu.int/estatref/info/sdds/en/lc/lc_lci_sm.htm 

4.1.1 Periodicity

4.1.2 Timeliness

a)     Countries are obliged to transmit complete and consistent data from the Labour Cost surveys within 18 months of the end of the reference period. On average, it takes another four to six months to prepare the data for general distribution.

b)     Countries are asked to transmit their reference year data in the autumn of year t+1. The data are immediately made available for general distribution subject to favourable checks.

c)     According to the legal obligation, approximately 70 days after the end of the reference period. The data are immediately made available for general distribution subject to favourable checks.

5.1.3 Advance release calendar

The precise date of the release of the quarterly Labour Cost Index data is published on Eurostat’s website (select language and release timetable).

Not applicable in the case of four-yearly and annual data.

5.1.4 Simultaneous release

0.1.1 Responsibility for collecting, processing, and disseminating statistics

Eurostat

Rules on statistical compilation

Council Regulation (EC) N° 322/97 of 17 February 1997 on Community Statistics (OJ N° L 52/1) sets the rules for General provisions, the Community statistical program and its implementation, Principles, Dissemination, Statistical confidentiality and Final provisions.

Labor market: Wages/Earnings

Rules on statistical compilation

a)     The collection of four-yearly labour cost data is based on Council Regulation (EC) No 530/1999 of 9 March 1999 concerning structural statistics on earnings and on labour costs.

           Details of labour cost variables for 2000 are the subject of Commission Regulation (EC) No 1726/1999 of 27 July 1999 implementing Council Regulation (EC) No 530/1999 concerning structural statistics on earnings and on labour costs as regards the definition and transmission of information on labour costs. Details of labour cost variables for 2004 are the subject of Commission Regulation (EC) No 1737/2005 of 21 October 2005 amending Regulation (EC) No 530/1999 as regards the definition and transmission of information on labour costs.

b)     The collection of annual Labour Cost data is based on gentlemen’s agreements.

c)     The collection of data on the Labour Cost Index is based on Regulation (EC) No 450/2003 of the European Parliament and of the Council of 27 February 2003 concerning the labour cost index and Commission Regulation (EC) No 1216/2003 of 7 July 2003 implementing Regulation (EC) No 450/2003 of the European Parliament and of the Council of 27 February 2003 concerning the labour cost index.

0.1.3 Confidentiality of individual reporters' data

Eurostat

1.2.2 Internal governmental access to statistics prior to release

The European Central Bank receives the Labour Cost Index data, under embargo and for internal use only, prior to their release to the public. The news release is also sent to the Commissioner’s Cabinet and to the Eurostat and Commission Press Offices prior to data release.

Not applicable in the case of four-yearly and annual data.

1.2.3 Attribution of statistical products

News release drafted by Eurostat on the occasion of the release of Labour Cost Index data: see website.

Not applicable in the case of four-yearly and annual data.

4.3.1 Revision schedule

Labour Cost indices based on both national and EU estimates are subject to frequent revision. The general public is informed accordingly in the press releases.

Not applicable in the case of four-yearly and annual data.

5.2.1 Dissemination of documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques

Details on the methodology can be found in the publications included in the part on “Dissemination Formats” and details of the quality of the 2000 survey can be found in the summary quality report.

5.2.2 Disseminated level of detail

Metadata in SDDS format are also available on Eurostat website at: http://europa.eu.int/estatref/info/sdds/en/lc/lc_base.htm and
http://europa.eu.int/estatref/info/sdds/en/lc/lc_lci_sm.htm 

4.2.1 Internal consistency

a)     Monetary variables are expressed in euros, national currencies (if different) and Purchasing Power Standards (PPS). Labour costs are quoted in total and per year, per month and per hour, as well as per capita and in full-time units (FTU). Information on staff, hours worked and hours paid is quoted in aggregate and separately for full- and part-time employees.
Details of the quality of the 2000 survey can be found in the summary quality report.

b)      Monetary variables are expressed in euros, national currencies (if different) and Purchasing Power Standards (PPS), and information on structure is given in %.

c)      The data on the Labour Cost Index are given in the form of index numbers (current reference year: 2000) and of annual and quarterly growth rates (comparison with the previous quarter).

In contrast to the information collected under a) and b), the labour costs covered in the LCI do not include vocational training costs and some other minor expenditure such as recruitment costs and working clothes expenditure.

4.2.2 Temporal consistency

Time coverage

a)     The time coverage varies according to the periodicity of the different statistics.

           The Member States have had a legal obligation to carry out Labour Cost Surveys since 1999. The reference year for the last survey was 2004. Earlier surveys related to 1975, 1978, 1981, 1984, 1988, 1992, 1996 and 2000, of which only the last two mentioned broadly satisfy current legal obligations and are therefore basically comparable with the 2004 survey.

c)     Annual since 1996.

d)     Quarterly since the beginning of 1996.

4.2.3 Intersectoral and cross-domain consistency

a)     Information on labour costs is also included in National Accounts and collected in Structural Business Surveys (SBS) though in far less detail. Methodological differences rule out complete comparability. National Accounts as well as SBS data cover units of all size categories and use different statistical units. In addition, their labour cost concepts are narrower, as they do not cover other expenditure and related taxes minus subsidies under the labour costs heading.

b)      See explanations under a) for information on comparability with labour cost data from National Accounts and Structural Business statistics.

Structural Business Statistics (SBS, annual data) and the Labour Force Survey (quarterly data) are surveys that partly measure similar or identical variables, such as “number of employees” or ”wages and salaries”. Whilst the National Accounts (NA) and the Labour Cost Survey (LCS) are closely related, certain coherence problems should be taken into account when comparing data relating to the same variables from the four different sources (LCS, SBS, Structure of Earnings Survey (SES), NA). Some of these problems are described in the summary methodology.