Bulgaria with the lowest labor costs in the EU
Employers’ spending on work in our country is four times lower than the EU average, according to Eurostat data. Spend per hour worked in Bulgaria by 7 euros for 2021. For the EU, the average labor costs for the year amount to 29.1 euros, and on an annual basis the increase is 1.7%. The increase for the euro area is 1.2% compared to 2020, ie 32.8 euros. There is a big difference between the average labor costs in the EU. The lowest values were reported in Bulgaria and Romania – respectively 7 and 8.5 euros, and the highest in Denmark – 46.9 euros, Luxembourg – 43 euros and Belgium – 41.6 euros.
The average hourly rate in industry is € 29.1 in the EU and € 35.1 in the euro area, € 26 in construction for the EU and € 29.3 in the euro area, and € 28.8 and € 31.6 respectively in the services sector.
Labor costs consist of two main things – wages and social security. The share of expenditure without payment of total labor costs for the economy is 24.6% in the EU and 25.1% in the euro area. Lithuania has the lowest share of non-wages – 3.7%, followed by Romania – 4.9% and Ireland – 8.7%. The highest percentages are reported from Sweden – 32%, France – 31.9%, Italy – 28.3%.
Labor costs in the euro area increased for all countries except Italy – -1.6%, and Spain – -0.3%. The largest increase is reported by Lithuania – 12.5%, Estonia – 6.5%, Cyprus – 6.2%, Slovenia – 6.2% and Latvia – 6.1%.
Bulgaria recorded the largest increase in hourly labor costs in non-euro area countries – 9.1%, followed by Poland – 8.2% and Hungary – 7.3%. The lowest growth is reported by Croatia and Sweden – by 3% each.