13 December 2019
2019- n° 322In Q3 2019, both labour cost index - wages and salaries and total labour cost index
increased by 0.9% Labor cost index in industry, construction and services - third quarter 2019
In the third quarter of 2019, the labour cost index (LCI) - wages and salaries in the non-farm business sector rebounded sharply : +0.9% quarter on quarter, after –1.1% in Q2 2019 (seasonally adjusted data). The decline in the second quarter after the strong increase in the first one occurred as a result of the payments of the special bonus for purchasing power (PEPA), which were carried out in the first quarter.
- On 1st January 2019, the tax credit encouraging competitiveness and jobs (CICE) was transformed into a permanent reduction in employers’ social contributions of an equivalent amount. In concrete terms, this means abolishing the tax credit as such, and creating a uniform 6-point reduction in the rate of employers' social contributions applicable to salaries up to a maximum of 2.5 times the minimum wage (the rate reduction, as well as the base, are equal to those of the CICE in metropolitan France before its abolition). This transformation is neutral on the labour cost index.
- As part of the economic and social emergency measures adopted by the French Parliament in December 2018, firms might pay a special bonus for purchasing power (PEPA) in the first quarter of 2019, to employees earning less than 3 times the minimal wage. This bonus, which is free of income tax and social contribution up to 1’000€, boosted the labour cost index – wages and salaries by 1.9 points and the total labour cost index by 1.3 points only in Q1 2019.
- Following the merger of the supplementary pension schemes AGIRC and ARRCO, the corresponding social contribution rates were modified on 1st January 2019, increasing by 0.3 points the total labour cost index.
- The wages and salary costs increased by 0.9%
- Wages rebounded sharply in services and construction, a little more softly in industry
- Slight revision of LCI – wages and salaries in Q2 2019
- The total labour cost index increased by 0.9%
- Slight revision of LCI – total labour cost in Q2 2019
- For futher information
The wages and salary costs increased by 0.9%
In the third quarter of 2019, the labour cost index (LCI) - wages and salaries in the non-farm business sector rebounded sharply : +0.9% quarter on quarter, after –1.1% in Q2 2019 (seasonally adjusted data). The decline in the second quarter after the strong increase in the first one occurred as a result of the payments of the special bonus for purchasing power (PEPA), which were carried out in the first quarter.
Year on year, the LCI – wages and salaries rose by 1.9%, a stronger increase than in the previous quarter (+1.4%). The average working time slightly increased in the third quarter (+0.3% y-o-y).
tableauLCI - wages and salaries: Year-on-year changes
| Total | Industry | Construction | Services | |
|---|---|---|---|---|
| 2012-Q1 | 1.7 | 2.5 | 0.3 | 1.6 |
| 2012-Q2 | 2.1 | 2.3 | 1.6 | 2.0 |
| 2012-Q3 | 2.4 | 2.5 | 2.3 | 2.4 |
| 2012-Q4 | 2.5 | 2.3 | 2.2 | 2.5 |
| 2013-Q1 | 2.3 | 2.1 | 2.2 | 2.3 |
| 2013-Q2 | 2.5 | 2.6 | 2.2 | 2.4 |
| 2013-Q3 | 2.3 | 2.7 | 2.1 | 2.2 |
| 2013-Q4 | 2.1 | 2.2 | 1.9 | 2.1 |
| 2014-Q1 | 2.2 | 2.2 | 2.5 | 2.1 |
| 2014-Q2 | 1.6 | 1.7 | 1.3 | 1.5 |
| 2014-Q3 | 1.3 | 1.6 | 0.9 | 1.3 |
| 2014-Q4 | 1.1 | 1.8 | 0.8 | 0.8 |
| 2015-Q1 | 1.4 | 1.8 | 1.1 | 1.2 |
| 2015-Q2 | 1.4 | 1.7 | 1.5 | 1.2 |
| 2015-Q3 | 1.4 | 1.7 | 1.0 | 1.3 |
| 2015-Q4 | 1.7 | 1.9 | 2.1 | 1.5 |
| 2016-Q1 | 1.5 | 1.8 | 1.4 | 1.3 |
| 2016-Q2 | 1.4 | 1.7 | 1.5 | 1.2 |
| 2016-Q3 | 1.3 | 1.5 | 2.4 | 1.1 |
| 2016-Q4 | 1.0 | 1.3 | 1.6 | 0.9 |
| 2017-Q1 | 1.7 | 1.8 | 3.0 | 1.5 |
| 2017-Q2 | 1.6 | 2.2 | 3.1 | 1.3 |
| 2017-Q3 | 1.6 | 2.3 | 2.4 | 1.3 |
| 2017-Q4 | 1.8 | 1.9 | 3.7 | 1.6 |
| 2018-Q1 | 1.5 | 2.1 | 0.8 | 1.5 |
| 2018-Q2 | 1.8 | 1.8 | 1.7 | 1.8 |
| 2018-Q3 | 1.9 | 1.8 | 2.4 | 2.0 |
| 2018-Q4 | 2.1 | 2.0 | 0.7 | 2.3 |
| 2019-Q1 | 3.0 | 3.4 | 5.1 | 2.6 |
| 2019-Q2 | 1.4 | 1.6 | 2.2 | 1.3 |
| 2019-Q3 | 1.9 | 1.7 | 2.5 | 2.1 |
graphiqueLCI - wages and salaries: Year-on-year changes
- Scope: non-agricultural market sector excluding services to households.
- Sources: ACOSS, DARES, INSEE.
Wages rebounded sharply in services and construction, a little more softly in industry
In Q3 2019, wages in industry started to rise again (+0.4%, after –1.6% in Q2 2019).
Wages in construction rebounded sharply (+1.1%) after having fallen sharply in Q2 2019 (–1.6%).
Wages in services also rebounded (+1.1% after –0.9%). They increased notably in transportation and storage (+2.4% after –1.3%), in accommodation and food services activities (+1.3% after –1.3%) and in financial and insurance activities (+1.3% after –2.3%).
tableauLCI - wages & salaries
| Quarterly variations (%) | Yearly variations(%) | |||
|---|---|---|---|---|
| Q2-2019 | Q3-2019 | Q2-2019 | Q3-2019 | |
| Industry | -1.6 | 0.4 | 1.6 | 1.7 |
| Mining and quarrying | -1.0 | -1.6 | 2.9 | 1.5 |
| Manufacturing | -1.5 | 0.3 | 1.6 | 1.6 |
| Electricity, gas, steam and air conditioning supply | -2.4 | 1.7 | 0.8 | 1.1 |
| Water supply; sewerage, waste management and remediation activities | -1.3 | 0.2 | 3.9 | 3.8 |
| Services | -0.9 | 1.1 | 1.3 | 2.1 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | -0.8 | 0.5 | 1.8 | 1.9 |
| Transportation and storage | -1.3 | 2.4 | 0.9 | 3.0 |
| Accommodation and food service activities | -1.3 | 1.3 | 0.8 | 1.9 |
| Information and communication | -0.7 | 0.7 | 0.9 | 1.5 |
| Financial and insurance activities | -2.3 | 1.3 | 1.8 | 3.0 |
| Real estate activities | -1.3 | 1.1 | 2.4 | 2.9 |
| Professional, scientific and technical activities | -0.3 | 1.0 | 0.5 | 1.0 |
| Administrative and support service activities | -0.1 | 0.6 | 1.3 | 1.5 |
| Construction | -1.6 | 1.1 | 2.2 | 2.5 |
| TOTAL | -1.1 | 0.9 | 1.4 | 1.9 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
Slight revision of LCI – wages and salaries in Q2 2019
In comparison to the previous release of 13 September 2019, the Q2 2019 quarterly variation in LCI - wages and salaries in the non-farm business sector has been revised upwards by 0.1 percentage points ; the year-over-year variation has been revised downwards by 0.1 percentage points.
The total labour cost index increased by 0.9%
In the third quarter of 2019, the total labour cost index in the non-farm business sector increased over the quarter : +0.9% after –0.5% in the second quarter – seasonally adjusted data. It increased by 2.2% over the year, a faster pace than in the second quarter (+1.7%).
tableauLCI - total labour cost: year-on-year changes
| Total | Industry | Construction | Services | |
|---|---|---|---|---|
| 2012-Q1 | 2.0 | 2.9 | 0.7 | 1.8 |
| 2012-Q2 | 2.3 | 2.6 | 2.0 | 2.2 |
| 2012-Q3 | 2.5 | 2.7 | 2.5 | 2.4 |
| 2012-Q4 | 2.4 | 2.4 | 2.2 | 2.3 |
| 2013-Q1 | 0.4 | 0.2 | 0.1 | 0.5 |
| 2013-Q2 | 0.6 | 0.7 | 0.1 | 0.6 |
| 2013-Q3 | 0.6 | 0.9 | 0.3 | 0.5 |
| 2013-Q4 | 0.3 | 0.3 | 0.0 | 0.4 |
| 2014-Q1 | 1.4 | 1.3 | 1.6 | 1.4 |
| 2014-Q2 | 0.7 | 0.8 | 0.4 | 0.7 |
| 2014-Q3 | 0.4 | 0.6 | -0.1 | 0.4 |
| 2014-Q4 | 0.2 | 0.8 | 0.0 | -0.1 |
| 2015-Q1 | 0.8 | 1.2 | 0.4 | 0.6 |
| 2015-Q2 | 0.8 | 1.1 | 0.8 | 0.6 |
| 2015-Q3 | 0.8 | 1.0 | 0.2 | 0.7 |
| 2015-Q4 | 1.0 | 1.3 | 1.2 | 0.8 |
| 2016-Q1 | 1.8 | 1.9 | 2.3 | 1.6 |
| 2016-Q2 | 1.1 | 1.1 | 2.0 | 1.0 |
| 2016-Q3 | 0.9 | 0.9 | 2.8 | 0.7 |
| 2016-Q4 | 0.6 | 0.7 | 1.9 | 0.4 |
| 2017-Q1 | 0.6 | 0.9 | 2.5 | 0.3 |
| 2017-Q2 | 1.0 | 1.8 | 2.9 | 0.6 |
| 2017-Q3 | 1.1 | 2.0 | 2.2 | 0.7 |
| 2017-Q4 | 1.5 | 1.6 | 3.8 | 1.3 |
| 2018-Q1 | 2.1 | 2.6 | 1.5 | 2.0 |
| 2018-Q2 | 2.5 | 2.4 | 2.4 | 2.7 |
| 2018-Q3 | 2.7 | 2.4 | 3.2 | 2.8 |
| 2018-Q4 | 2.8 | 2.6 | 1.2 | 3.1 |
| 2019-Q1 | 2.7 | 3.0 | 4.3 | 2.5 |
| 2019-Q2 | 1.7 | 1.8 | 2.1 | 1.7 |
| 2019-Q3 | 2.2 | 1.8 | 2.5 | 2.4 |
graphiqueLCI - total labour cost: year-on-year changes
- Scope: non-agricultural market sector excluding services to households.
- Sources: ACOSS, DARES, INSEE.
Slight revision of LCI – total labour cost in Q2 2019
The Q2 2019 quarter-on-quarter variation in total labour cost index in the non-farm business sector remained unchanged and the year-over-year variation has been revised downwards by 0.2 percentage points.
tableauLCI - total labour cost
| Quarterly variations (%) | Yearly variations (%) | |||
|---|---|---|---|---|
| Q2-2019 | Q3-2019 | Q2-2019 | Q3-2019 | |
| Industry | -1.0 | 0.4 | 1.8 | 1.8 |
| Mining and quarrying | -0.1 | -1.6 | 3.1 | 1.8 |
| Manufacturing | -0.9 | 0.3 | 1.7 | 1.8 |
| Electricity, gas, steam and air conditioning supply | -2.1 | 1.7 | 0.9 | 1.2 |
| Water supply; sewerage, waste management and remediation activities | -0.7 | 0.2 | 4.0 | 4.0 |
| Services | -0.3 | 1.1 | 1.7 | 2.4 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | -0.2 | 0.5 | 2.3 | 2.3 |
| Transportation and storage | -0.7 | 2.5 | 1.0 | 3.3 |
| Accommodation and food service activities | -1.0 | 1.3 | 1.0 | 2.2 |
| Information and communication | -0.2 | 0.7 | 1.3 | 1.8 |
| Financial and insurance activities | -0.9 | 1.3 | 2.2 | 3.5 |
| Real estate activities | -0.6 | 1.1 | 2.8 | 3.3 |
| Professional, scientific and technical activities | 0.2 | 1.0 | 0.9 | 1.4 |
| Administrative and support service activities | 0.3 | 0.6 | 1.7 | 2.0 |
| Construction | -0.9 | 1.2 | 2.1 | 2.5 |
| TOTAL | -0.5 | 0.9 | 1.7 | 2.2 |
- Scope: non-agricultural market sector excluding services to households
- Sources: ACOSS, DARES, INSEE
For futher information
Next issue: 13 march 2020 at12 am.
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