The most notable increase in hourly labor costs was recorded in the education sector

In the third quarter of 2023, the hourly labor cost in Romania recorded a significant increase of 1.31% compared to the previous quarter and 15.15% compared to the same period in 2022.

The most notable increase in hourly labor costs was recorded in the education sector, with an impressive 38.42% compared to the second quarter of 2023. Other increases were recorded in other service activities (1.36%), entertainment, cultural and recreational activities (1.15%), and public administration (0.89%). However, in most economic sectors, hourly labor costs decreased compared to the previous quarter, according to data from the National Institute of Statistics (INS).

The most significant decreases were recorded in financial intermediation and insurance (-10.20%), real estate (-5.56%), and administrative and support service activities (-4.06%).

Compared to the previous quarter, the direct (wage) labor expenditure component increased by 1.31% and the indirect (non-wage) expenditure component by 1.34%. Compared to the same period last year, hourly labor costs increased in all economic sectors, with the most significant increases in education (30.46%), construction (22.07%), and administrative and support service activities (19.05%).

Overall, in the third quarter of 2023, hourly labor costs recorded significant increases, reflecting the evolution of labor market dynamics in Romania.