Bulgaria’s Labor Costs Among the Lowest in EU

Brussels, The Gulf Observer: The latest data from Eurostat reveals that labor costs in the European Union (EU) averaged €33.5 per hour in 2024, while in the eurozone, the average was higher at €37.3 per hour. This marks an increase from 2023, when labor costs were recorded at €31.9 per hour in the EU and €35.7 per hour in the eurozone.

Lowest and Highest Labor Costs

Bulgaria reported the lowest labor costs in the EU at €10.6 per hour, followed by Romania at €12.5 and Hungary at €14.1. Conversely, Luxembourg had the highest labor costs at €55.2 per hour, with Denmark at €50.1 and Belgium at €48.2.

Breakdown of Labor Costs

Eurostat data distinguishes labor costs into wages and salaries and “accompanying costs,” which include social security, pension, and health contributions. In the EU, accompanying costs constituted 24.7% of total labor costs, while in the eurozone, this figure was slightly higher at 25.5%.

Sectoral Analysis

Labor costs were highest in the industrial sector, averaging €33.9 per hour in the EU and €39.8 in the eurozone. In the construction sector, the costs stood at €30 per hour in the EU and €33.4 in the eurozone. The services sector recorded labor costs of €33.3 per hour in the EU and €36.4 in the eurozone.

Regional Labor Cost Increases

Labor costs increased across the EU in 2024, with the largest hikes observed in Croatia and Romania, both experiencing a 14.2% rise. Bulgaria followed closely with a 13.9% increase, while Hungary and Poland recorded rises of 13.6% and 12.8%, respectively. The smallest increases were noted in Belgium (2.4%), Luxembourg (2.1%), and Finland (1.8%).

Due to these increases, Bulgaria moved up one position in the rankings, having previously ranked fourth in 2023 when it experienced a 14% rise in labor costs.

The continued rise in labor costs across the EU reflects ongoing economic and wage growth trends, impacting competitiveness and labor market dynamics across the region.