Total labour costs increased in the 2nd quarter of 2008 by 3.1% in the economic activity of Transport, storage and communication, 1.9% in Construction and 0.9% in Manufacturing compared with the previous quarter. During the same period the index for total labour costs decreased by 0.7% in the economic activity of Wholesale and retail trade; repair.
Total labour costs excluding bonuses increased between quarters by 1.2% in the economic activity of Construction and 0.4% in Transport, storage and communication. During the same period the total labour costs excluding bonuses decreased by 1.4% in the economic activity of Wholesale and retail trade; repair and 0.2% in Manufacturing.
Annual increases in total labour costs range from 4.4% in Wholesale and retail trade; repair to 9.6% in Transport, storage and communication. In the economic activity of Manufacturing the increase was 5.9% and 6.0% in Construction.
A collective agreement between the Confederation of Icelandic Employers (SA) and the Icelandic Confederation of Labour (ASI), on behalf of its member unions was signed in the 1st quarter of 2008 and ratified by the trade unions on 12 March. Since the agreement was not fully ratified until mid-March, it also had effect on the wage index in the 2nd quarter 2008. Other agreements between individual trade unions and the Confederation of Icelandic Employers, on behalf of its member businesses, were also ratified in this period.
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.
Statistics