Labor costs increased by 1.2% in the first quarter

Workers’ wages rose just 1.7%, well below the 9.8% inflation rate included at the end of March

Workers continue to lose purchasing power in the face of the unstoppable escalation of inflation. According to the latest data from the National Institute of Statistics (INE), labor costs for employers increased by 1.2% between January and March compared to the same period of the previous year.

That is a tenth less compared to the growth in the previous quarter. And if only the cost corresponding to the employees’ salaries is considered, it has increased by 1.7% over the period analysed. A period that ended with an inflation rate of 9.8% in March, showing that salaries are far from equaling the rise in the cost of living.

The INE data also reflects the evolution of wages by sector, where financial and insurance activity was the fastest growing year-over-year at 9.4%, followed by real estate activities (+5.4%) and activity professionals (+5.2 %, while the biggest setbacks occurred in the extractive industries (-31.8%), artistic activities (-8.2%) and information and communication (-2.5%).

The hotel sector, for its part, increased its wages by 2.9% in the first quarter of this year compared to the same period in 2021, although the sector’s total labor costs decreased by 2.3% year-on-year due to the sharp decline in other costs (-14%).

In total, the sections that recorded the highest annual labor cost increases in the first quarter were financial and insurance activities (+9.9%), real estate activities (+5%) and professional, scientific and technical activities (+3.9%). By contrast, the largest annual savings occurred in the extractive industries (-26.2%); artistic activities (-8.3%) and information and communication (-3.2%).

Source: La Verdad

Wayne

I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.