How to read it
Compensation growth combines unit labor cost growth and productivity growth. The gap compares compensation growth with productivity growth.
Benchmark · quarterly · %
European labor-cost pressure
Are compensation costs rising faster than productivity?
European labor-cost pressure tracks ULC, compensation growth and productivity growth. It uses quarterly data.
European labor-cost pressure tracks ULC, compensation growth and productivity growth. It uses quarterly data.
- Unit labor cost
- 3.6%
- Compensation
- 3.9%
- Productivity
- 0.3%
- Compensation–productivity gap
- +3.6 pp
- Historical percentile
- 85th
- of 121 readings · since 1996-03-31
European labor-cost pressure
Unit labor cost
Compensation
Productivity
| Series | First | Latest | Min | Max |
|---|---|---|---|---|
| Unit labor cost | 3.50 | 3.60 | -4.00 | 7.90 |
| Compensation | 4.54 | 3.91 | -3.75 | 7.71 |
| Productivity | 1.00 | 0.30 | -10.80 | 12.20 |
How this is calculated
ULC, compensation growth and productivity growthPIER20 calculates this benchmark from official observations from Eurostat. The formula is ULC, compensation growth and productivity growth. The source table lists each selector and source link.
The latest data is from Q1 2026. The latest reading is 3.60%. The Unit labor cost line is up 0.1 pp over the past year. It is above its long-run median of 1.50%.
How to read it
How this benchmark is used
Why traders watch it
Rates and equity traders use this benchmark to compare wage pressure with productivity growth.
Frequently asked questions
4 answersWhat is the latest reading for European labor-cost pressure?
The latest data is from Q1 2026. The latest reading is 3.60%. The Unit labor cost line is up 0.1 pp over the past year. It is above its long-run median of 1.50%.
How often does this benchmark update?
The source publishes quarterly data. PIER20 updates the page after each new observation. The chart shows the data date and fetch date.
What data sources does this chart use?
Eurostat publishes the data. The methodology section lists each source series.
Where does the data come from?
Eurostat publishes the source data. The source table lists each series and its exact link.