# European labor-cost pressure | PIER20 benchmarks

Are compensation costs rising faster than productivity?

European labor-cost pressure tracks ULC, compensation growth and productivity growth. It uses quarterly data.

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%.

## Summary statistics (full history)

| 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 |
| Compensation–productivity gap | 3.54 | 3.61 | -4.49 | 7.32 |

## Last 24 readings

| Date | Unit labor cost | Compensation | Productivity | Compensation–productivity gap |
|---|---|---|---|---|
| Q2 2020 | 7.90 | -3.75 | -10.80 | 7.05 |
| Q3 2020 | 3.10 | 1.04 | -2.00 | 3.04 |
| Q4 2020 | 3.10 | 1.24 | -1.80 | 3.04 |
| Q1 2021 | 1.20 | 2.41 | 1.20 | 1.21 |
| Q2 2021 | -4.00 | 7.71 | 12.20 | -4.49 |
| Q3 2021 | 1.00 | 3.63 | 2.60 | 1.03 |
| Q4 2021 | 0.90 | 4.23 | 3.30 | 0.93 |
| Q1 2022 | 2.40 | 5.16 | 2.70 | 2.46 |
| Q2 2022 | 3.20 | 4.85 | 1.60 | 3.25 |
| Q3 2022 | 3.40 | 4.64 | 1.20 | 3.44 |
| Q4 2022 | 4.80 | 4.80 | 0.00 | 4.80 |
| Q1 2023 | 6.00 | 5.89 | -0.10 | 5.99 |
| Q2 2023 | 7.40 | 6.22 | -1.10 | 7.32 |
| Q3 2023 | 7.10 | 5.81 | -1.20 | 7.01 |
| Q4 2023 | 6.80 | 5.95 | -0.80 | 6.75 |
| Q1 2024 | 6.30 | 5.87 | -0.40 | 6.27 |
| Q2 2024 | 5.10 | 5.42 | 0.30 | 5.12 |
| Q3 2024 | 4.50 | 5.23 | 0.70 | 4.53 |
| Q4 2024 | 3.60 | 4.74 | 1.10 | 3.64 |
| Q1 2025 | 3.50 | 4.43 | 0.90 | 3.53 |
| Q2 2025 | 3.60 | 4.43 | 0.80 | 3.63 |
| Q3 2025 | 3.30 | 4.23 | 0.90 | 3.33 |
| Q4 2025 | 3.20 | 4.13 | 0.90 | 3.23 |
| Q1 2026 | 3.60 | 3.91 | 0.30 | 3.61 |

## How to read this benchmark

**How to read it.** Compensation growth combines unit labor cost growth and productivity growth. The gap compares compensation growth with productivity growth.

## 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

**What 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.

## Methodology

- Formula: ULC, compensation growth and productivity growth
- Frequency: Quarterly
- Sources: Unit labor cost (ulc-growth) https://ec.europa.eu/eurostat/api/dissemination/statistics/1.0/data/namq_10_lp_ulc?freq=Q&unit=PCH_SM&s_adj=NSA&na_item=NULC_PER&geo=EU27_2020; Compensation (compensation-growth) https://ec.europa.eu/eurostat/api/dissemination/statistics/1.0/data/namq_10_lp_ulc?freq=Q&unit=PCH_SM&s_adj=NSA&na_item=NULC_PER&geo=EU27_2020; Productivity (productivity-growth) https://ec.europa.eu/eurostat/api/dissemination/statistics/1.0/data/namq_10_lp_ulc?freq=Q&unit=PCH_SM&s_adj=NSA&na_item=RLPR_PER&geo=EU27_2020; Compensation–productivity gap (compensation-productivity-gap) https://ec.europa.eu/eurostat/api/dissemination/statistics/1.0/data/namq_10_lp_ulc?freq=Q&unit=PCH_SM&s_adj=NSA&na_item=NULC_PER&geo=EU27_2020. Data via Eurostat.
- Data through: Q1 2026
- Last refreshed: 11 Aug 2026

Full interactive chart: https://pier20.com/benchmarks/european-labour-cost-pressure
Disclaimer: research software output, not investment advice.