Total labour costs decreased in the 1st quarter of 2008 by 1.6% in the economic activity of Construction, 1.4% in Manufacturing and 1.0% in Wholesale and retail trade; repair compared with the previous quarter. During the same period the index for total labour costs increased by 0.7% in the economic activity of Transport, storage and communication.
Total labour costs excluding bonuses increased between quarters from 0.1% for the economic activity of Construction to 5.9% in the economic activity of Transport, storage and communication. The increase in the economic activity of Manufacturing was 2.3% and 2.4% in Wholesale and retail trade; repair.
Annual increases in total labour costs range from 1.3% in Construction to 8.4% in Wholesale and retail trade; repair. In the economic activity of Manufacturing the increase was 5.0% and 7.1% in the economic activity of Transport, storage and communication.
In the 1st quarter of 2008 a collective agreement between the Confederation of Icelandic Employers and the Icelandic Confederation of Labour (on behalf of its member unions) and other special collective agreements were ratified and came partly into effect at the end of the 1st quarter 2008. Other valid collective agreements stipulate a general wage increase in the beginning of the year 2008.
The labour cost index measures, on a quarterly basis, the development of labour costs per hour worked. The index is not adjusted to changes in working hours or labour structure.
| Labour cost index by economic activity, change from previous quarter | |||||||||
| % | 2006 | 2007 | 2008 | ||||||
| 1 quart. | 2 quart. | 3 quart. | 4 quart. | 1 quart. | 2 quart. | 3 quart. | 4 quart. | 1 quart. | |
| Manufacturing | |||||||||
| Total labour costs | -3.9 | 1.8 | 3.6 | 8.0 | -0.4 | -0.1 | 0.5 | 6.2 | -1.4 |
| – excluding bonuses | 2.2 | 0.3 | 5.0 | 3.5 | 4.6 | -1.5 | 1.6 | 2.2 | 2.3 |
| Wages and salaries | -4.3 | 1.9 | 3.3 | 8.2 | -0.7 | -0.1 | 0.3 | 6.3 | -1.2 |
| Labour costs other than wages | -2.0 | 1.3 | 4.9 | 7.0 | 1.2 | -0.4 | 1.4 | 5.7 | -2.4 |
| Construction | |||||||||
| Total labour costs | 2.4 | -1.8 | -0.9 | 8.4 | 2.1 | -2.7 | -1.9 | 7.8 | -1.6 |
| – excluding bonuses | 5.7 | -2.3 | -0.5 | 6.4 | 4.6 | -3.4 | -1.3 | 6.0 | 0.1 |
| Wages and salaries | 2.2 | -1.8 | -0.6 | 8.4 | 1.6 | -2.8 | -1.6 | 7.4 | -1.5 |
| Labour costs other than wages | 3.6 | -1.8 | -2.5 | 8.5 | 4.7 | -1.9 | -3.4 | 9.9 | -2.4 |
| Wholesale | |||||||||
| Total labour costs | -3.4 | -1.7 | -1.2 | 9.0 | -1.7 | 0.7 | -0.7 | 9.6 | -1.0 |
| – excluding bonuses | 1.1 | -1.0 | -0.4 | 4.1 | 3.8 | -0.8 | -0.2 | 6.2 | 2.4 |
| Wages and salaries | -3.6 | -1.6 | -1.4 | 9.6 | -2.2 | 0.7 | -0.7 | 9.7 | -1.0 |
| Labour costs other than wages | -2.4 | -2.2 | -0.6 | 6.1 | 1.3 | 0.5 | -0.7 | 8.8 | -1.2 |
| Transport | |||||||||
| Total labour costs | -4.3 | 1.7 | 1.1 | 9.3 | -0.9 | -1.9 | -0.7 | 9.3 | 0.7 |
| – excluding bonuses | 4.3 | -0.2 | 2.6 | 2.3 | 5.4 | -2.3 | 0.7 | 3.4 | 5.9 |
| Wages and salaries | -4.8 | 1.7 | 1.1 | 9.7 | -1.3 | -1.8 | -1.0 | 9.3 | 0.5 |
| Labour costs other than wages | -1.6 | 1.7 | 1.4 | 7.6 | 1.0 | -2.5 | 0.4 | 9.3 | 1.7 |
Statistics