The latest Labour Cost Index (LCI) report for Cyprus, covering the third quarter of 2024, highlights a notable annual increase of 4.0% in hourly labour costs compared to the same period in 2023. This growth is driven by a 4.6% rise in wages and salaries and a 1.5% increase in non-wage costs.
When adjusted for seasonal variations, the total labour cost rose by 1.0% compared to the previous quarter, with wages and salaries increasing by 1.2% and non-wage costs by 0.3%. These figures underscore steady economic activity and moderate cost pressures on employers.
The LCI, a critical indicator of labour market dynamics, is based on administrative and survey data, reflecting changes in hourly labour costs across sectors. This report signals continued growth in wages while maintaining controlled increases in employer contributions.
These trends are vital for understanding inflationary pressures and guiding economic policies in Cyprus.
