While the Eurozone and European Union report steady increases in labour costs, Greece stands out as the sole country experiencing a decline. According to Eurostat’s latest survey, labour costs in the EU rose by 5.1% in the third quarter of 2024 compared to the same period last year, with the Eurozone registering a 4.6% increase. In contrast, Greece recorded a 2.9% drop.

Declining labour costs in Greece

Labour costs, as defined by Eurostat, include wages, salaries, and non-wage costs. Across the EU and the Eurozone, both components showed significant growth in the third quarter of 2024:

• Eurozone: Hourly wages and salaries rose by 4.4%, while non-wage costs increased by 5.2%.
• EU: Hourly wages and salaries grew by 5.0%, and non-wage costs by 5.3%.

However, Greece bucked the trend, showing a 2.9% decrease in overall labour costs, including wages. This figure contrasts sharply with nations such as Romania (+17.1%), Croatia (+15.1%), and Hungary (+14.1%), which led the EU in labour cost increases.

Sharp contrast with 2023 trends

The decline in Greece’s labour costs is particularly striking compared to its performance in 2023. In the third quarter of that year, Greece had posted a 6.7% increase in labour costs, with wages rising by 7%. By 2024, the figures had plummeted to -2.6% and -2.9%, respectively.

Sector-specific analysis

In the Eurozone, labour cost increases were relatively consistent across sectors:

• Industry: +4.6%
• Construction: +5.0%
• Services: +4.5%

Similarly, the EU showed strong growth across all sectors:

• Industry: +5.3%
• Construction: +5.5%
• Services: +4.9%

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