Hourly labour costs drop in Cyprus

The average hourly labour costs in Cyprus dropped by 6.9% in nominal value during the first quarter of 2014, compared with the same period of 2013. In the Eurozone, the hourly cost rose by 0.9% and in the EU by 1.2%, according to Eurostat.
The average reduction of labour costs in Cyprus was due to 7.9% in pay cuts and 1.2% in non-wage costs.
Regarding individual sectors, the total hourly labour cost in Cyprus dropped by 3.3% in industry, 3.4% in construction, and 7.5% in services.
Among the member states for which figures are available for the first quarter, the highest annual increases in hourly labour costs for the whole economy were registered in Latvia with +7.0%, Estonia +6.8%, Romania +5.3% and Poland +4.2%. Decreases were recorded in Cyprus by -6.9%, Croatia -1.7%, Ireland -0.2% and Italy -0.1%.