Croatia records one of EU’s biggest rises in labour costs

LUXEMOBURG, 17 September 2026 (Hina) – Growth in hourly labour costs across the European Union slowed in the second quarter of 2026, while Croatia remained among the countries recording the strongest increases, according to new Eurostat data.

Hourly labour costs in the euro area increased by 3.1% year-on-year between April and June, down from a revised 3.3% increase in the first quarter.

Across the EU, hourly labour costs rose by 3.2%, compared with a revised 3.5% increase in the January-March period.

The figures include both wages and salaries as well as employers’ social contributions and other labour-related costs.

In the euro area, wage costs increased by 3% year-on-year in the second quarter, while social contribution costs rose by 3.2%. Across the EU, both categories increased by 3.2%.

Croatia among biggest increases

Croatia recorded a 9.4% annual increase in nominal hourly labour costs in the second quarter, placing it among the countries with the largest rises in the EU.

Only Bulgaria and Lithuania recorded higher increases, at 9.9% and 9.6% respectively.

Croatia’s increase was slightly lower than in the first quarter, when hourly labour costs had risen by 9.6% year-on-year.

Wage costs in Croatia increased by 8.9% in the second quarter, following a 9.2% rise in the previous three months.

Only Bulgaria, at 9.9%, and Lithuania, at 9.6%, recorded faster growth in nominal wage costs during the period.

Croatia recorded the strongest increase in nominal social contribution costs among the countries for which Eurostat had data, rising by 12%. This followed a 12.2% increase in the first quarter.

Lithuania and Bulgaria were the only other countries to record double-digit increases in contribution costs, at 10.1% and 10%, respectively.

Construction sees strongest growth

By sector, construction recorded the largest increase in hourly labour costs, rising by 3.9% in both the euro area and the EU.

Services followed, with increases of 3% in the euro area and 3.1% across the EU.

Industry recorded growth of 2.9% in the euro area and 3% in the EU.

At the other end of the scale, Romania recorded the smallest increase in hourly labour costs, at 1.8%. Luxembourg and France followed at 2.1%, while Italy recorded a 2.2% increase.

Eurostat said data for Belgium were not available.