EU hourly labor costs hit €34.9 average as Eastern states lead growth rates
Brussels, Eurostat Data. Hourly labor costs across the European Union continued their upward trajectory in 2025. However, massive structural disparities remain between member states, ranging from €12 in the East to nearly €57 in Western Europe.
The average hourly labor cost in the EU reached €34.9, up from €33.5 in 2024. In the Eurozone, the average was recorded at €38.2, reflecting a steady climb driven by wage adjustments and persistent economic pressures.
The East-West divide
Bulgaria recorded the lowest labor costs at €12 per hour, followed by Romania at €13.6 and Hungary at €15.2. In contrast, Luxembourg maintains the highest costs at €56.8, followed by Denmark at €51.7.
This creates a stark five-fold disparity between the EU's highest and lowest earners. Such a gap highlights the ongoing challenge of economic convergence within the single market.
Sectoral performance and non-wage burdens
Construction remains the most cost-efficient sector for employers, with an EU average of €31.5 per hour. This sits notably below the non-business economy, which includes healthcare and education, averaging €35.5.
Within the Eurozone, industry leads as the most expensive sector at €40.3 per hour. Conversely, construction remains the most affordable for firms at an average of €34.4.
Rapid growth in emerging economies
Year-on-year, EU labor costs rose by 4.2%. Bulgaria saw the most aggressive surge at 13.1%, while Romania and Poland reported significant increases of 10.6% and 8.8% respectively.
In contrast, mature economies like France and Italy saw more moderate growth of 2.0% and 3.2%. Malta was the sole outlier, recording a marginal decrease of 0.5% in labor expenses.
Taxation and social contributions
Direct wages are not the only factor for employers. Non-wage costs, such as social contributions, account for roughly 25% of the total expenditure in both the EU and the Eurozone.
France and Sweden continue to record the highest non-wage burdens. These statutory costs remain a critical factor in determining the overall competitiveness of European businesses on the global stage.
Translation by Iurie Tataru
