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2026.03.1910:39:13UTC+00Euro Area Labor Costs Growth Eases to 3.3% in Q4

Hourly labor costs in the Euro Area increased by 3.3% year-on-year in Q4 2025, easing slightly from an upwardly revised 3.4% in Q3. Wages and salaries rose by 3.0%, down from 3.2%, while non-wage costs accelerated to 4.4% from 3.9%.

By sector, labor costs grew 3.5% in the non-business economy and 3.2% in the business economy, with mixed dynamics across industries: +2.5% in industry, +4.0% in construction, and +3.4% in services.

Across the largest economies, labor cost growth moderated in Germany (3.2% vs. 4.3%) and the Netherlands (4.8% vs. 5.1%), was unchanged in France (1.7%), and picked up in Spain (3.9% vs. 2.0%) and Italy (2.6% vs. 2.3%).

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