labour costs — The hourly labour costs in Cyprus rose by 4.1% in the second quarter of 2025, reflecting a steady increase compared to the same period last year. This data, released by the Statistical Service on Monday, indicates a significant trend in the country’s employment costs.
Breaking down the figures, the increase comprises a 4.2% rise in wages and salaries per hour worked, alongside a 4.1% uptick in non-wage costs per hour worked, compared to the second quarter of 2024. These figures highlight how both components contribute to the overall labour cost landscape in Cyprus.
Labour costs: Seasonal Adjustments Show Consistency
When adjusted for seasonal fluctuations, the hourly labour cost recorded a 1% increase compared to the previous quarter. Notably, this same 1% rise was evident in both wages and salaries and non-wage costs, showcasing a consistent trend across the board.
Understanding the Labour Cost Index
The Labour Cost Index (LCI) serves as a critical measure of the hourly expenses that businesses incur to employ labour. The index encompasses all economic activities, with the exception of agriculture, forestry, fishing, and households acting as employers, as well as extraterritorial organisations and bodies. This broad coverage ensures that the LCI effectively captures the evolving cost landscape of labour in Cyprus.
As the economy continues to recover and adapt, these labour cost increases may reflect broader economic trends, including inflationary pressures and shifts in the job market. The data released by the Statistical Service provides valuable insight for policymakers and businesses alike as they navigate the complexities of the current economic environment.
