Euro area hourly labor costs rose 3.6% YoY in Q2 2025, up from 3.4% YoY in Q1 2025, with both wages and non-wage costs contributing to the increase.

• In the euro area, wages & salaries rose 3.7% YoY (vs 3.5% YoY previously) and non-wage costs increased 3.4% (vs 3.2% YoY previously).

• By sector in the euro area, labor costs rose 3.3% YoY in industry, 4.7% in construction, and 4.3% in services, while the non-business economy increased 2.7%.

• In the EU, labor costs grew 3.9% YoY in industry, 4.8% in construction, and 4.6% in services, with the non-business economy up 3.1%.

• Professional, scientific & technical activities saw the highest wage growth in the EU at +8.9% YoY, followed by mining & quarrying at +6.7%; real estate activities posted the lowest increase at +1.6%.

• Non-wage costs in the EU rose fastest in professional, scientific & technical activities (+7.3% YoY) and mining & quarrying (+6.6%), while administrative & support services recorded the lowest increase at +1.8%.

• Among member states, Bulgaria (+13.4% YoY), Hungary (+11.0%), Romania (+10.4%), Estonia (+10.3%), and Greece (+10.1%) recorded the steepest wage cost increases, while France (+1.4%), Denmark (+1.5%), and Malta (+1.9%) saw the smallest gains.