The average hourly cost of labor within the European Union (EU) climbed in the second quarter of 2010 by 1.6 per cent.

According to the latest figures from Eurostat, the 16 eurozone nations also saw a similar rise in the figure, compared with 1.9 per cent for the three months to March.

The annual increase fell back slightly from 2.1 per cent in the first quarter of 2010 to 1.6 per cent in the period to June, as the pace of economic recovery eased.

Within the 27 EU nations, hourly wages were 1.5 per cent higher in the second quarter, while the non-wage component was up by 1.7 per cent - the same level as the previous three months.

Hourly costs in the euro area rose most sharply in the services sector, where they climbed by 1.9 per cent, compared with 1.7 per cent in construction and 1.1 per cent in industry.

Highest increases in the index were found in Bulgaria, which saw a jump of 8.6 per cent over the quarter, and Romania (five per cent).

Eurostat reported recently that unemployment remained unchanged in the euro area at ten per cent during July 2010 and was also stable at 9.6 per cent in the EU27.

Posted by Alex Donnell