Tuesday - 16 March 2010
Labour cost index in 4th quarter 2009
Total labour costs per hour increased by 13% between the 3rd and 4th quarter of 2009 in the economic activity of Transport, storage and communication, 10.8% in Wholesale and retail trade; repair, 8.5% in Construction and 7.3% in Manufacturing.
Total labour costs excluding bonuses increased between quarters by 5.7% in Transport, storage and communication, 5.6% in Wholesale and retail trade; repair, 4% in Construction and 1.8% in Manufacturing.
From the previous year total labour costs rose in all economic activities. The increase ranged from 5.6 % in Manufacturing and Construction to 7.7% in Wholesale and retail trade; repair.
According to an agreement signed 25 June 2009 between the Confederation of Icelandic Employers and the Icelandic Confederation of Labour (on behalf of its member unions) a wage increases were supposed to come into effect 1 March 2009. Instead the wage increase came in to effect 1 July 2009 where the wages increased by 6,750-8,750 ISK and by same amount 1 November 2009. The agreement also stipulated a general wage increase of minimum 3.5% from 1 January 2009 to 1 November 2009.
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.