As the European Union (EU) jobs market expands, latest figures indicate the region has seen a 2.7 per cent year-on-year rise in hourly labor costs.

According to the data from Eurostat, growth to the first quarter of 2011 outstripped the 1.8 per cent recorded in the previous three months, driven up by the industry, construction and services sectors.

The EU statistical agency noted that hourly wages and salaries were 2.6 per cent higher over the year, while non-wage expenses climbed by 3.5 per cent.

Across those nations that have adopted the euro, hourly labor costs rose by 2.6 per cent during the period in question, comprising climbs of 2.3 per cent in pay and 3.6 per cent for the remainder.

Highest annual labor cost increases in the first quarter of 2011 were found in Bulgaria and Hungary, at 7.8 per cent and 5.6 per cent respectively.

Eurostat figures showed that employment remained stable across the 27 EU member states during the first quarter of 2011, with strong increases in financial services and business activities.

Posted by Alex Donnell