1. LAMAS January 2016
Agenda Item Annual Labour costs levels Denis Leythienne Daniel Iscru

2. Annual Labour costs levels
Summary
News release on annual labour costs
- Changes
- User’s feedback
Future developments
NACE breakdowns
Timetable for 2016 release

3. Background information
Annual data on hourly labour cost levels (‘annual levels’) was first introduced in 2012
based on the 2008 Labour Cost Survey and the Labour Cost Index
exercise repeated in 2013 and 2014
since 2014, annual levels replaced data that used to be transmitted directly by the Member States under the previous gentlemen’s agreement.
Advantages
time saving for countries
data for year N published once the LCI data for Q4 are available (March/April of year N+1 instead of N+2

4. Background information
Further NACE breakdowns and LCS2012 data, providing the opportunity to improve the quality of LCI-based estimates
Section 2: details on revision of the annual levels triggered in 2015, when new benchmark data (LCS 2012) became available
Section 4: deadlines for Member States who wish to substitute Eurostat data with their own estimates

5. News Release on March 2015

6. News Release on March 2015
March 2015 Eurostat issued a news release on annual levels for the period
Eurostat has published the annual levels for all LCS benchmark years i.e. 2000, 2004, 2008 and 2012 jointly with the annual (LCI-based) estimates for 2013 and 2014.
The annual levels were based for the first time on LCS2012
The annual levels were based for the first time on LCS2012- s the change to the new LCS as basis meant for some countries (?) significant revisions.

7. Annex 1 Difference between the LCS2008-LCI based estimates and LCS2012 data for total hourly labour costs

8. Statistics Explained pages on labour costs have been updated on the basis of the LCS-LCI based

9. Plans for 2016 release
>10%
No of cases
>20%
Frequency
20%
Belgium 2 1
10.5%
5.3%
Bulgaria
0.0%
Czech Republic
Denmark
Germany
Estonia
Ireland
Greece 7
36.8%
Spain
France
Croatia 4 3
21.1%
15.8%
Italy
Cyprus 9
47.4%
Latvia
Lithuania
Luxembourg
Hungary
Malta
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland
Sweden
United Kingdom
- Comparison between LCS2012 data and LCI-based annual estimates- Proportion of country  NACE cells with high (>10%) or very high (> 20%) discrepancy
After excluding NACE section L, the remaining gaps remain sizeable for 4 member states, namely: Greece, Cyprus, Malta and Portugal. Out of these states, Greece already documented most of the discrepancies by methodological changes between LCS 2008 and LCS The other 3 countries are also invited to report possible explanations to Eurostat and to decide on this basis whether they think the NACE breakdown can also be published for them.

10. Plans for 2016 release NACE breakdowns
- Only the country × NACE combinations above the confidentiality threshold on both LCI and LCS sides were considered.
- NACE section L excluded due to higher discrepancies.
- Eurostat considers that except for NACE section L and observing confidentiality flags, the quality is sufficient to support the publication of annual levels by NACE.
- Is thus proposed to start disseminating annual labour cost level estimates by NACE section from 2016 onwards.
After excluding NACE section L, the remaining gaps remain sizeable for 4 member states, namely: Greece, Cyprus, Malta and Portugal. Out of these states, Greece already documented most of the discrepancies by methodological changes between LCS 2008 and LCS The other 3 countries are also invited to report possible explanations to Eurostat and to decide on this basis whether they think the NACE breakdown can also be published for them.

11. Plans for 2016 release
Eurostat will publish annual levels for 2000, 2004, 2008 and 2012 together with annual (LCI-based) estimates from 2012 onwards on 31 March 2016 in a News Release.
The NACE breakdown might be disseminated later as it is not analysed in Eurostat’s publication.
For MS delivering their own estimates of ALC, the latest delivery accepted for the News Release will be on 18 March 2016.

12. The LAMAS working group is invited:
To comment on plans for the next release of annual labour cost estimates to be issued on 31 March 2016
To comment on ESTAT’s proposal to publish additional NACE breakdowns
To inform Eurostat should some countries wish to substitute national data (before 18 March 2016) for the LCS-LCI based estimates

13. Thank you for your attention!