Hourly cost of labor, up in Q2 due to Covid-19 crisis

The hourly labor cost in the second quarter of the year increased by 11.47% compared to the previous quarter and by 16.11% compared to the same quarter of the previous year, determined mainly by the interruption of the activity in the context of Covid-19, according to a National Institute of Statistics (INS) release sent to AGERPRES on Thursday.

The hourly cost of labor (adjusted to the number of working days) increased in all economic activities compared to the previous quarter.

These increases in the hourly cost of labor were mainly determined by the interruption / cessation of economic activity in the context of Covid-19, by reducing the actual time worked, but also by reducing direct (salary) labor costs, caused by many businesses entering furlough , as well as production failures or lower revenues during the state of emergency / alert.

The most significant increase in the hourly labor cost (adjusted to the number of working days) was found in hotels and restaurants (74.09%), followed by entertainment, cultural and recreational activities (30.01%).

These economic sectors were also the most affected by the interruption / cessation of the activity of businesses as a result of the state of emergency / alert on the entire territory of Romania.

Although the total labor costs in hotels and restaurants decreased compared to the previous quarter, the decrease in actual working time was much more pronounced, thus determining the increasing evolution of the hourly labor cost.

On the other hand, the lowest increase in the hourly cost of labor (in a form adjusted to the number of working days) was registered in construction (3.85%), an activity in which both direct (salary) labor costs and the actual time worked also had positive evolutions.

Compared to the previous quarter, the increase in the component of direct (salary) labor expenditures was 11.58%, and that of indirect (non-salary) expenditures was 9.04%.

Compared to the same quarter of the previous year, the hourly cost of labor (adjusted to the number of working days) increased in all economic activities, the evolution being similar to that compared to the previous quarter.

The main causes of the increase in the hourly cost of labor compared to the corresponding quarter of the previous year were also the interruptions / cessations of economic activities in the context of Covid-19, the decrease of actual working time and the reduction of direct (salary) labor costs.

The most significant increases in the hourly labor cost (adjusted to the number of working days) were also found in hotels and restaurants (77.01%), respectively in entertainment, cultural and recreational activities (41.36%).

The smallest increases in the hourly labor cost (adjusted to the number of working days) were registered in professional, scientific and technical activities (6.69%), respectively in public administration (6.05%).

The increase compared to the same quarter of the previous year for the component of direct (salary) expenses with labor was 16.20%, and for the component of indirect (non-salary) expenses, 14.13%.