# Euro area labour costs rise 3.1% as construction labour costs jump 3.9%

> Hourly labour costs increased 3.1% in the euro area and 3.2% in the EU in the second quarter, Eurostat said, with wages and non-wage costs both contributing.

- Canonical URL: https://forextradingcommunity.com/news/euro-area-labour-costs-q2-2026/
- Type: Data
- Published: 2026-09-18
- Updated: 2026-09-18
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: EUR

Eurostat published its labour cost index for the second quarter of 2026 on 16 September.

## The figures

Compared with the second quarter of 2025:

- **Euro area hourly labour costs**: up 3.1%, made up of a 3.0% rise in wages and salaries and a 3.2% rise in non-wage costs (employers' social contributions and similar costs)
- **EU hourly labour costs**: up 3.2%, with wages and non-wage costs both up 3.2%

## By sector (euro area)

- **Construction**: +3.9%, the fastest-growing sector
- **Services**: +3.0%
- **Industry**: +2.9%
- **Non-business economy** (mainly public administration, education and health): +3.1%
- **Business economy**: +3.0%

Across the EU, the activities with the largest wage increases were real estate (+5.7%), other service activities (+5.1%) and administrative and support services (+4.8%). Mining and quarrying recorded the smallest rise (+1.5%), and professional, scientific and technical activities saw wage costs fall 0.4%.

## Why it matters for the euro

Labour costs feed directly into the European Central Bank's read on domestic inflation pressure, separate from the energy-driven price rises Eurostat flagged in its August inflation data ([report](/news/euro-area-inflation-confirmed-3-2-percent-august-2026/)). A 3.1% rise in hourly labour costs is one reason wage growth stays on the list of things the ECB watches, against its 2% inflation target, even as it manages an energy shock; the ECB raised its deposit rate to 2.50% on 10 September ([report](/news/ecb-raises-interest-rates-september-2026/)). The next labour cost release, covering the third quarter, is due 17 December. Live prices: [EUR/USD](/markets/eur-usd/).

## Sources

- [Eurostat: Annual increase in labour costs at 3.1% in euro area, 16 September 2026](https://ec.europa.eu/eurostat/product?code=3-16092026-bp)

## Common questions

### How much did euro area labour costs rise in the second quarter of 2026?

Hourly labour costs rose 3.1% in the euro area and 3.2% in the EU compared with the second quarter of 2025, according to Eurostat, split roughly evenly between wages and non-wage costs.

### Which sector had the fastest labour cost growth in the euro area?

Construction, where hourly labour costs rose 3.9% in the euro area in the second quarter of 2026, ahead of services (3.0%) and industry (2.9%).

### When is the next Eurostat labour cost release?

Eurostat publishes the third-quarter 2026 labour cost index on 17 December 2026.

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