Hourly labour costs in EU likely rose

The hourly labour costs in euros is given in the table. In Q2 2015, the average hourly labour cost was €29.6 in the euro area. The highest hourly labour cost was seen in Ireland at €43.2 an hour. This compares with €32.8, €35.8, €27.4 and €21.0 for Germany, France, Italy and Spain, respectively.

In the case of France, it is worth noting that the CICE is taken into account when measuring hourly labour costs. This CICE tax benefit is included in the non-wage costs by the National Statistical Institute (INSEE) as a subsidy paid to firms. 

"Overall, the tax rebate to firms totalled €12bn in 2014 (on 2013 compensation) and €20bn in 2015. In 2015, the CICE impact seems to have waned as hourly labour costs (both wage and non-wage costs) held firm, raising questions over the efficiency of the government's 'Responsibility' pact which is aimed at slashing labour costs and boosting business competitiveness", says Societe Generale.