The average labor cost per worker per month, a figure that combines salaries and social contributions, rose by 3.8 percent in the second quarter. For the same period in 2021, the level stood at 2,871.64 euros, a number reported this Friday by the National Institute of Statistics. This stretch of growth marks a notable year-over-year acceleration in a period where many economies were recalibrating post-pandemic labor dynamics.
The rise in labor costs effectively chained six consecutive quarters of increases. It reflects several contributing factors: longer working hours as unemployment dwindled and seasonal holidays reduced the idle time, plus fewer disruptions that prevented work for reasons ranging from technical to organizational and production constraints. There were also adjustments tied to force majeure measures, including ERTEs. It is important to note that ERTE schemes were wound down and other mechanisms were activated in the second quarter in response to the evolving pandemic situation.
On a quarterly basis, the growth in labor costs slowed notably, easing by nine-tenths after a 1Q rebound of 4.7 percent. This softer pace suggests a transition period as firms absorbed wage pressures and adjusted hours, while the broader labor market continued to tighten and demand for skilled workers remained robust in many sectors.
Labor cost is composed of two main components: salaries and other related costs. In the second quarter, gross wages rose 4.3 percent year over year, reaching an average of 2,153.88 euros per worker per month. This marks the highest quarterly figure within the period and points to ongoing wage inflation as the labor market stayed tight and competition for talent intensified. The series with this data begins in 2000, anchoring the long-run perspective on wage developments.
Several sectors contributed to the wage dynamics in the quarter. The accommodation and food services sector, for example, led wage growth, recording an average of 1,242.84 euros per worker per month, up 40.3 percent from the same quarter a year earlier. This surge represents the strongest annual increase since the fourth quarter of 2008, highlighting how service-oriented businesses faced a more pronounced wage pressure as demand rebounded and labor supply remained constrained.
Additionally, the report noted that there were 145,053 job postings in the second quarter. A job vacancy is defined as a newly created position or an open role that is unfilled or about to be vacated, with employers actively pursuing candidates. This signals persistent frictions in the labor market, even as overall unemployment rates trended downward and hiring activity adjusted to post-pandemic conditions. In the second quarter, a large share of employers continued to seek external candidates to fill roles, a trend that underscores ongoing talent gaps in certain sectors and regions.
Overall, 94.1 percent of responding firms reported having no vacancies to fill between April and June, indicating that many companies did not require additional workers. This snapshot reveals a nuanced picture: while some industries faced surged wage costs and higher hours, others maintained staffing levels with limited hiring needs. The mixed signals reflect a labor market transitioning through recoveries of demand, productivity considerations, and policy responses that buffered employment in some areas while exposing tightness in others. As analysts interpret these trends, the implications for wage negotiations, productivity planning, and competitive competitiveness remain central to business strategy across economies that track these indicators closely (citation attribution: INE).