Labor costs close 2024 at historic highs

BarcelonaLabor costs—the cost to the company of each employee, including salary and other expenses such as social security contributions—closed 2024 at historic highs in both Catalonia and Spain, according to a survey published Monday by the National Statistics Institute (INE). Specifically, labor costs in Catalonia averaged €3,483 at the end of the fourth quarter, after increasing by 2.6% compared to the last quarter of the previous year, while in Spain as a whole they averaged €3,258 per month, a 3.6% increase.

In both Spain and Catalonia, industry recorded the highest labor costs, €3,780 per month in the country as a whole and €4,216 in the Principality, ahead of construction (€3,242 in the country and €3,520 in Catalonia) and services (€3,171). Although labor costs in both Spain and Catalonia are the highest in the historical series—which began in 2000—in Catalonia, industry did not close 2024 at its highest value, reaching €4,283 per month in the second quarter of 2024.

Across the country, the largest increase in labor costs was recorded in services (3.8%), followed by industry (3.7%) and construction (0.8%). Regarding wages, the largest increase was also seen in services (3.9%), although it is the sector with the lowest value; and the smallest increase was in construction, where wages fell by 0.4%. In industry, they rose by 3.3%.

By activity, labor costs registered the largest increases in the extractive industries (7.7% to €4,893) and in financial and insurance activities (7.1% to €5,824.7). In contrast, the smallest increases were seen in construction, with a rise of 0.8% to €3,242, and in administrative activities, with a rise of 2.2% to €2,250.

In absolute figures, the highest labor costs continue to be in energy activities, at €6,381 per worker per month, followed by financial activities, at €5,824.7. These are followed by information and communications (€4,760) and professional activities (€4,105). The sectors with the lowest labor costs were hospitality (€1,966), administrative activities (€2,250), other services (€2,339), and artistic activities (€2,520).

Rising wage costs

For its part, Strictly salary costs closed 2024 in Catalonia at 2,622 euros per month, 2.6% more. than a year ago; while for the whole country it stood at 2,442 euros, 3.5% more.

By region, Extremadura, Murcia, and Asturias saw the largest increases in labor costs in the fourth quarter of last year, while Cantabria, the Basque Country, and Aragon recorded the smallest increases. The highest labor cost was recorded in Madrid, at €3,536 per month per worker, and the lowest in Extremadura, at €2,495.

The INE statistics also show 148,018 job vacancies in the fourth quarter across the country as a whole, 8,704 more than a year earlier, although a decrease from the 150,000 it had surpassed since March of last year. In Catalonia, there were 28,689 vacancies, just over 19% of the total for Spain.